Netflix Launches Video Service in UK and Ireland

Netflix has launched its streaming Internet video service in the United Kingdom and Ireland, in a move that could result in the company’s first quarterly loss in almost a decade.

Monthly subscriptions will cost £5.99 and €6.99 (both around $9) in the UK and Ireland respectively. Its main rival in Europe, Lovefilm, charges £4.99 and already has a readymade base of around 2 million subscribers on the continent.

Netflix has plenty of subscribers away from Europe – more than 20 million in the U.S. and a further 1.5 million outside the States – but it is a complete newcomer in Europe.

The company suffered a painful loss of almost a million customers last year when it introduced eye-watering price rises. The move saw Netflix quickly backpedal, though customers remained largely unimpressed. From mid-July to the end of 2011, Netflix’s value dropped by 75%

When combined with the earlier exodus of customers, the cost of Netflix’s expansion is anticipated to result in a loss when the firm reports its fourth-quarter earnings on January 25.

However, it would seem a recovery is underway. 2012 is still young, but Netflix shares have seen a resurgence, largely thanks to speculation that the company could receive a fat buyout offer.

Shares might not be anywhere near their July 2011 high of $305, but they have gained by $11.89, or nearly 14 percent, this year. They now stand at $98.18.