Netflix is currently working on expanding their services to two European countries by the first quarter of 2012.

According to several top film distributors located throughout Europe, Netflix is nearly finished to closing a deal that would offer service to citizens in both Spain and the United Kingdom.

While movies by mail is only offered to U.S. citizens, it is most likely that Netflix will offer streaming plans to their European market. Netflix is also most likely using the U.K. and Spain to test the market before expanding further throughout Europe.

Netflix also offers streaming only plans in Canada which arrived in September 2010 and are working on launching services to 43 countries in Latin America and the Caribbean by December 2011.

Netflix has been trying to restructure their imagine as a streaming video service provider and by offering streaming only plans to other countries only helps boost their imagine.

It is currently unknown if the licensing from the U.S. and Canadian library will be offered to the international market.

The UK is no stranger to streaming content as their government offers free streaming video of public programming via the BBC-iPlayer. Spain is heavily known for illegal streaming, however the quality is terrible and the chance of getting disconnected is high. Netflix hopes that cheap plans will sway customers to spend money for a quality services that offers a quantity of services rather than a free service that offers limited hazy video.