Thursday, 5 March 2015

Netflix Package on Cuba is Half of Monthly Wage

Netflix has finally entered Cuba’s nascent digital entertainment industry, despite the fact that only a few consumers may want to enjoy the benefits. Today, there are only 5,300 broadband Internet accounts on the island. Moreover,local low wages mean that Netflix services will cost about half of an average Cuban’s monthly wage.

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Netflix announced its launch on Cuba by saying that the country has great movie-makers and a robust arts culture, and that it hopes to bring its services to the global audience of over 57 million members.

The California-based company launched a $7.99 per month streaming service for Cuba a few days ago, while the average Cuban’s monthly wage is only $17. This makes Netflix services very symbolic. The industry experts are sure that the move is not going to change much in the short term.

The statistics say that Cuba’s Internet is very slow, its availability is sparse, and prices are high. The experts estimate Internet penetration at about 2.8m, or about a quarter of the country’s population of 11.3m. In the meantime, computers are expensive – average price is $722 in Cuban stores, so only less than 1/3 of Cubans have access to a computer – at home, work or school. But tor those who do have access to the worldwide web, it is tightly regulated and – again – expensive.

Netflix did not contact the Cuban government over content it is going to offer in the country, saying that what content they show depends on their licensing rights. Apparently,Netflix is confident in the reforms underway in Cuba and that loosened restrictions on US businesses will bring investments in the country, including infrastructure improvement.

It should be noted that the Cuban government already completed a high-speed, undersea Internet cable more than a year ago, but it seems that the line had not yet been brought to full capacity. But it will still take about another 5 years, if not even more, of additional building up the infrastructure before the country is given more basic access.

Another problem is that Cubans would need access to an international payment method to pay for Netflix services, while bank cards are not widely available in the country. Finally, Netflix might be subject to censorship by the local government, which closely monitors the Cuban Internet.


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