The music-streaming service, which has only been available for a little over a year, was pegged as a rival to Apple's iTunes and Spotify. It allowed web users to stream as many tracks as they liked from the four-million-strong catalogue of tunes, as well as downloading between 10 and 15 songs in MP3 format every month. Prices start from £6.49 per month.
However, it's thought that the service attracted fewer than 10,000 subscribers. As a result, Sky revealed it will abandon the project.
"We've taken the difficult decision to close Sky Songs," Sky said.
"Although we are extremely proud of the service we built and the experience it offers, we just didn't see the consumer demand we'd hoped for. As Sky Songs demonstrates, we're a business that takes risks and innovates, but at the same time, we're pragmatic and act decisively when a new venture isn't working out."
The service will close completely on February 7 and customers have already received emails warning them of the move. Sky said web users will be able to keep any tracks downloaded via the service.
See also: Sky+ app for iPhone launches