The Grand Duchy netted the Internet player as part of the government’s ongoing campaign to entice international technology firms to set-up shop in Luxembourg.

Silicon Valley-based Netflix already has established operations in the US, Canada, and 43 countries in Latin America and the Caribbean. The company provides more than 20 million customers with films and TV shows streamed via the Internet to computers, tablets, mobile phones and game consoles.

Netflix plans to launch its service in the UK and Ireland “in early 2012,” a spokesman told Delano. He said the tech firm already had a “small presence” in the Grand Duchy. However, the spokesman would not comment on its growth plans, nor on when the service might be available in Luxembourg and other European markets.

“Netflix’s intention to extend its activities into Europe and establish its European operations centre in Luxembourg is another step in the continued development of the information and communication technology sector,” Jeannot Krecké, the economy and trade minister said in a government statement.

“Netflix’s choice of Luxembourg is further testimony of the Grand Duchy’s leadership in the media and digital content delivery space,” added François Biltgen, the communications and media minister.

“We are delighted to establish our European base in Luxembourg, joining numerous other companies in the Internet space that have found an attractive business environment,” stated David Wells, chief financial officer of Netflix.

The company was founded in the late 1990s as an online service that rented DVDs by mail to its US customers.