The UK market has already seen consolidation with a merger of two UK players in January when ScreenSelect, the online DVD rental service created by Amazon.co.uk founder Simon Murdoch, merged with In-Movies to create the biggest service of its kind in the UK.
Although has no presence in the UK at the moment, internet users are likely to be familiar with the brand, which advertises across a wide number of sites.
It will be competing with established services such as and .
Netflix hopes to launch the service by the last quarter of this year. It has some 2m subscribers in the US and is listed on Nasdaq. It charges US subscribers $19.95 (£11.25) and gives them access to more than 20,000 titles.
As well as expanding with a UK service, Netflix is looking at launching in Canada.
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