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Netflix launches OTT video content in Cuba

$7.99 monthly subscription is 39.7% of average Cuban salary

Over the Top streaming video provider Netflix on Feb. 9 began offering its service in Cuba following a December policy shift to begin loosening trade restrictions against the Communist dictatorship just 90 miles from the southern tip of Florida.

President Barack Obama on Dec. 17 announced changes that will allow American companies to open financial accounts in Cuba, ease travel rules and allow telecommunications companies to begin setting up the infrastructure and services needed for economic development and modernization.

Netflix Co-founder and CEO Reed Hastings said the company is “delighted” to expand on its 5 million-strong Latin American subscriber base.

“We are delighted to finally be able to offer Netflix to the people of Cuba, connecting them with stories they will love from all over the world,” Hastings said. “Cuba has great filmmakers and a robust arts culture and one day we hope to be able to bring their work to our global audience of over 57 million members.”

The streaming subscription plan will cost Cubans $7.99 per month, the same price as in America.

The thing is, the average monthly salary in Cuba is around 466 Cuban pesos, according to an August 2013 report by the Havana Times. In American dollars, that salary amounts to $20.13.

Crunching the numbers, a subscription to Netflix would cost the average Cuban worker 39.7% of his or her monthly salary.

Under the eased restrictions, U.S. companies will be allowed to export and sell communication devices, software and infrastructure.

With a population of 11 million, Cuba has an Internet penetration rate of about 5%, according to the White House, which added, “The cost of telecommunications in Cuba is exorbitantly high, while the services offered are extremely limited.”

ABOUT AUTHOR

Sean Kinney, Editor in Chief
Sean Kinney, Editor in Chief
Sean focuses on multiple subject areas including 5G, Open RAN, hybrid cloud, edge computing, and Industry 4.0. He also hosts Arden Media's podcast Will 5G Change the World? Prior to his work at RCR, Sean studied journalism and literature at the University of Mississippi then spent six years based in Key West, Florida, working as a reporter for the Miami Herald Media Company. He currently lives in Fayetteville, Arkansas.