The numbered Sky Sports channels will be replaced by stations dedicated to a particular sport, in the manner of Sky Sports F1, launched in 2012.
Football is set to get two dedicated channels, The Guardian reports, with one each for cricket and golf, while a new channel, Sky Sports Arena, will show rugby, tennis and other sports.
The strategy will also allow customers to pay as little as £18 a month to receive sports content in a bid to attract those not willing to pay £49.50, which is currently the cheapest package available.
It is the latest of a series of cheaper options introduced by Sky as it responds to changing viewing habits. Now TV, for example, offers much of the same content available through Sky channels for as little as £6.99 a month.
Last year, it introduced Sky Sports Mix, offering selected sports content, including some Premier League matches, to its basic package subscribers.
BT held onto its Champions League rights in a £1.2bn deal comfirmed in March.