If LoveFilm don't change their package prices it won't be hard... For the same price they give 2 hours of streaming a month; note that most films are over this length.
Edit: Didn't see chrisfarms comment below. Also the new movie selection on Netflix is rather poor.
But what about movies? Netflix has a few target groups:
- People who want to watch TV shows when they are released to DVD
- People who want to watch on-demand movies
The US has Hulu plus ABC/CBS/FOX/NBC all have on-demand online channels. In the same respects they only hold seasons for so long. So the market in the TV area is really no different than iPlayer/4oD/etc.
The top online TV series rental for Lovefilm is Robot Chicken - Star Wars.[1] I've been in the UK long enough to know that there is much more demand for US television series than Robot Chicken. (Modern Family for example, comes to mind)
The real challenge here is if Netflix UK has the same ownership rights as Netflix US. Otherwise they will sit no differently than Lovefilm.
Disclaimer - I'm American, but currently live in the UK.