Netflix expands into UK and Ireland

Netflix recently launched its online movie service in the U.K. and Ireland, entering into direct competition with British retailer Lovefilm, a branch of Amazon.

The Wall Street Journal reported Amazon became a Netflix competitor in the United States in 2011, when the online store started offering free online movie streaming with subscriptions to its Amazon Prime service. The two etailers are offering similar services and comparable prices to the British consumer base.

"Netflix has a standing start in the U.K.," Richard Broughton, head of broadband media at IHS Screen Digest, told the source. "The pay-TV sector is pretty developed, pretty advanced - and there is this competitive issue that they are facing, in that Lovefilm have an existing subscriber base."

Another British entertainment retailer, HMV, is also hoping to grow its consumer base online. Reuters reported the retailer is expanding its offerings to headphones and tablet computers, as its CD and DVD products are facing tough competition from digital downloads. To compete, HMV has enhanced its ecommerce site to make it more user-friendly, and is offering consumers a wider range of products.