US movie streaming service Netflix is expected to hit the UK early next year.

According to Variety, sources close to European film distributors, revealed the film-streaming service was planning an assault on both the UK and Spanish markets in early 2012. However, both countries were absent from a list published earlier this month that highlighted 43 markets Netflix is planning to break into by the end of 2011.

If the service does launch in the UK, it will go up against LoveFilm, which was purchased by Amazon in January this year, as well as TV-on-demand services from the like of Sky, Virgin Media and BT that already allow users to stream movies.

Netflix declined to comment on the rumours.