The service will rival DVD rental companies such as LoveFilm, Blockbuster and Tesco, offering 65,000 film titles and monthly subscriptions starting at £3.32.
The supermarket says its rental service, LidlMovies, will be cheaper than its competitors, with “first class service at the lowest price”.
It will also offer a 30-day free trial, free home delivery and return and no need for a contract.
Lidl says: “People value Lidl for its quality food offering at rock bottom prices” and its DVD rental service will offer “the same proposition on a different platform”.
The site will also offer film related news and features, including a monthly column focusing on an actress, actor and director, giving information about them, their career and a Top 10 list of their best films.