Netflix has flicked the switch on its UK site, offering UK users unlimited film streaming for £5.99 a month.

Set to be formally announced later on today, the launch sees the American service undercut its biggest British rival, Lovefilm, on the movie streaming front.

Update: The undercut has become the undercutter: in a move that has nothing whatsoever to do with Netflix, Lovefilm has dropped its UK pricing. You can now enjoy unlimited movie streaming on Lovefilm for £4.99 a month.

Lovefilm offers unlimited movie streaming for a minimum of £9.99 a month, although that also nets you two DVDs at home at a time as well – Lovefilm's £5.99 package only allows you two hours of streaming time each month.

Compare and compete

Although Lovefilm is yet to comment on Netflix's launch, we wouldn't be surprised to see the Amazon-owned company drop its prices to compete.

In advance of its launch today, Netflix has feverishly been signing content deals for the UK, with agreements now in place with the BBC Worldwide, Lionsgate UK and MGM; most likely there'll be news of a few more deals when the launch is made official this afternoon.

TechRadar will be getting the complete skinny from Netflix CEO Reed Hastings at an event later on today – until then, you can check out Netflix online and sign up for a free one month trial if it takes your fancy.