The UK launch of Netflix has only just gone live and Lovefilm has already responded with a price cut for its own unlimited streaming service.

The price for Lovefilm unlimited streaming has dropped to under a fiver - coming in at just £4.99 a month plus a 30-day free trial. Netflix, on the other hand, is selling its package for £5.99.

The timing of the move couldn't be better as it takes the emphasis away from the Netflix launch as well as reminding potential customers that there's more than one alternative. Most interestingly, it also sets a precedent for a price battle, of sorts, which can only be good for those who already or are thinking about joining up to a service.

To be fair to Lovefilm, it's also a great opportunity for the company to mention that its users have now reached the 2 million subscriber mark, a figure not to be sniffed at. So regardless of the current hype, Netflix certainly has some catching up to do.

Update: There was a £4.99 introductory price for new Lovefilm subscribers issued in early December 2011, so this price isn't as reactionary as first thought.