Netflix is the world's largest Internet subscription service and now its heading to Germany, France and four other European countries. This will be the company's biggest expansion in three years.

The company announced it will enter Switzerland, Austria, Belgium and Luxembourg, as well as part of the expansion. Pricing and timing haven't been announced yet.

The last big expansion that Netflix made was in 2011, when the company entered Latin America and the Caribbean.

By expanding its product into more countries, Netflix is trying to fend off competition from Amazon Prime Instant Video and Time Warner's HBO.

Netflix is already offered in the U.K., Ireland, the Netherlands, Denmark, Norway, Sweden and Finland. Entering Germany and France, with an estimated population of 146 million combined, will result in millions of additional subscribers.

German pay-TV services are feeling the pressure. Vivendi, who operates Watchever, a German service which has been unprofitable, is seeking partners. Sky Deutschland, pay-TV provider owned by Rupert Murdoch, is testing out a new streaming service

In France, Netflix will have to follow French rules. For instance, movies can't stream until they've been out of theatres for three years. Additionally, providers must provide at least 50 percent European content.

"The content landscape in Europe is much more scattered than it is in the U.S.," said Gilles Fontaine, an analyst at Montpellier, France-based researcher Digiworld. "It's difficult to imagine a pan-European strategy for programs -- in most countries the top-10 watch list is still mostly national content, specific to each country." 

Netflix is expecting big things from the international markets. It expects 70 to 80 percent of their revenue to come from outside the U.S. in the future.

"There's plenty of expansion markets that we feel like Netflix would be a viable product in," CFO David Wells said.

Recently, Netflix raised their prices by $1 per month for new subscribers.