Unlike the service offered Stateside, Netflix will not involve the physical distribution of films but instead stream them online exclusively.
"We are focused on entering one country and seeing how we do," Netflix CEO Reed Hastings said. "Because we are launching in the second half of the year, I don't think we could do a second country this year."
Talking about the failure of a previous attempt to launch a UK service in 2004, Reed added: "The big difference is we were entering with DVDs only [then]. It's streaming only [now]. That's a big difference - no warehouses, no integration with the Royal Mail."
Netflix was established in 1997 and now distributes over 100,000 titles to approximately 10 million subscribers.