Netflix UK launch: US giant takes a gamble as fierce web-TV battle shapes up with Amazon

  • Unlimited access via PC or TV for £5.99 a month
  • Rival service Lovefilm offers BBC and ITV shows
  • Sky announces deal with app company

By
Sean Poulter

Last updated at 11:57 PM on 9th January 2012

The battle for Britain’s living rooms intensified yesterday with the UK launch of film-rental service Netflix.

The U.S. firm offers subscribers a library of thousands of movies and TV programmes that can be streamed over the internet to televisions, computers or smartphones for just £5.99 a month.

In comparison, Sky charges £16 a month for its bundle of movie channels, while Virgin Media charges £21.50. The fees come on top of basic subscription packages for set-top boxes and TV channels.

How you can use Netflix to watch movies

How you can use Netflix to watch movies

Netflix could pose a threat to both companies, as well as other internet services such as Lovefilm, which is owned by Amazon.

Films from Netflix (and Lovefilm) are available to watch on computers, tablets, smartphones and newer internet-enabled televisions, and can also be streamed on normal TVs through an Xbox 360 or PlayStation 3 games console. Netflix customers can watch in their living rooms using a Nintendo Wii or Apple’s iTV set-top box, too.

The launch could put further pressure on Britain’s broadband infrastructure, which may struggle to cope if Netflix becomes a hit. This is because customers stream its films to their homes each time a movie is watched, instead of downloading and storing it for later.

NETFLIX: THE FACTS

Subscription: £5.99 per month

Works on: iPhone, iPad, Android phones and tablets Xbox 360, Wii, PCs, Macs, Samsung Smart TV and LG home cinema systems

Requires broadband internet

Unlimited access to films and TV shows

There is already evidence that the popularity of the BBC’s online
streaming service, iPlayer, means that other web users experience slower
internet speeds at peak times.

Netflix’s success in the U.S. – where it accounts for about a third of
internet use – has led to some internet service providers capping their
customer’s usage, or introducing higher charges for heavy users.

The future of on-demand streaming services in the UK will largely depend
on which films and TV programmes they can secure the rights to.

Netflix, which already has 20million subscribers worldwide, should have
enough financial muscle to build its business in Britain. It has signed
digital licensing deals with the BBC and Hollywood studios such as MGM,
Miramax and Lionsgate, and is offering potential customers a free
one-month trial. While initially its library looks limited, once
established, it hopes to offer the latest films for streaming as soon as
they become available on DVD.

Lovefilm, which already has two million UK customers, according to
Amazon, reacted to Netflix’s launch by announcing a £4.99-a-month
package for unlimited streaming.

Sky has responded to the emergence of both companies by making its TV
and film services available on a subscription basis over the internet as
well.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

here comes another money grabbing con!!!!!!!!

I get a pathetic 2mbs whilst just across the pond in holland my friend can choose between 60-100mbs line speeds with UNLIMITED bandwidth. The UK is in the dark ages for net speed and caps.

Netfilx is ok if your stuck for something to watch and dont mind watching something old! They just dont get any of the newer movies at all so personally I wouldnt bother my bff did the free one month trial here in Canada and told me not to even bother! as she knows I like to watch the new stuff when it comes out and for what they charge for the older stuff quite honestly I can probably nip to my local wal mart and buy it for cheaper and then I would own it forever too!!!!

Joe, USA, – When an American business decides to operate here, we are not “copying” anyone. It’s called capitalism, a little education would have taught you that.

Kuri, you are exactly right. The movies are old and not many good ones worth watching. It is really a waste of money!

So you have Blockbuster (American) Now you have Netflix (American) Do you guys have anything that’s not from here ? I will not bother with the list of US owned companies operating in the UK, it’s way too long to put on here. Plus all the other US walks of life you lot copy, that list is never ending.
For gods sake stop copying us in every facet of your lives, go back to being British. Maybe you could become the fifty first state.

Why on earth would anybody with broadband internet pay to watch TV shows and Movies?

There are hardly any good or later movies on there though…
When are the big mafia style film companies realise that its better to get £4.99 a month from 85% of the population to watch the films when they want and how they want including latest releases.
I hardly buy a dvd now a days as i wait for it on sky etc but will goto the cinema when there is something worth watching…
let us have the choice it will cut down on piracy as well as camcorder classics and you are still making money.
DVD’s and Bluray are too expensive and too restrictive, i.e finding one in your collection or one in the wrong box then having to sit though the pain of adverts and latest film releases most of which have been out for years already is very tiresome, get with the program… move with the times…. give us the choice and we will give you our money…

I just had a look at it. They have about 12 films in each category to watch, and some of them are cross overs. Some tv shows which already have shown on British tv. Useless. I want to watch some of the cool American tv shows that we don’t get over here without Sky.
I’ll stick to Blockbuster.

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