FilmOn enables users to download films to own, make custom DVDs, download films to rent or watch movies streamed through the site. FilmOn collects revenue from low-cost movie sales and rental through a range of advertising opportunities available on the site.
The company behind FilmOn, 111pix, is preparing a multi- platform ad blitz promoting the service, which will go live on 29 January.
The site intends to build a catalogue of movies in niche areas as well as blockbusters, by striking deals with rights holders.
The site is one of many ad-funded entertainment sites currently expanding into the UK.
Intel-backed Coolroom offers users a virtual world in which to watch films online, priced from £3. It also provides music downloads.
Meanwhile, other services such as music download site SpiralFrog, which is currently available in the US and Canada only, are also expected to expand beyond North America.
The online film services are attempting to take advantage of changing consumer habits that have seen people turn to the internet in favour of high-street retailers.