The playlist is just essentially links to the on-demand content whether it's stored in Sky servers or on on-demans apps like IPlayer. You can easily remove shows from your playlist by pressing the + button.
what you can't do is remove shows from the continue watching rail as of yet. Hopefully at some point Sky will implement this feature as otherwise the continue watching rail can be full of shows you don't want to continue watching or that accidentally start when apps like IPlayer just start playing another random show if you don't exit at the end of what you are watching.
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