Netflix launches service in Cuba, but will anyone be watching?

Netflix, the online streaming content provider, on Monday announced that its service is now available in Cuba.

In a press release, the company said it will offer its selection of movies and TV shows to “Cuban consumers,” as internet access and credit card use on the island increases.

Cuba has one of the lowest internet penetration rates in the world, at less than five percent

Right now the vast majority of Cubans will not be able to afford the $7.99 a month that Netflix charges for its service (the average salary in Cuba is $20 a month), but the announcement reflects the great expectations US corporations have with regard to the island’s consumer potential.

Late last year, the US and Cuba announced a normalization of bilateral relations after more than 50 years of embargo.

Ruled by a Communist dictatorship during that time, Cuba has one of the lowest internet penetration rates in the world, at less than five percent. And broadband access, which is a requirement to watch streaming video, is severely restricted.

On top of these difficulties, would-be customers need to be in possession of an international credit card to make their payment. MasterCard said that Cubans may use its cards as of March 1, and American Express announced that it will soon be operating on the island as well.

“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,” said Netflix co-founder and CEO Reed Hastings in a press release. “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.”

Following the statements by US President Barack Obama and Cuban leader Raúl Castro on December 17, the White House announced new measures to make travel to Cuba easier and to loosen up financial and trade restrictions.

For now, it is likely that Netflix will only be available to tourists staying at international hotels on the island. But the announcement sets an important precedent.

“We hope that, in time, Cubans will be able to enjoy Netflix as internet access improves and international credit card companies start offering their services in the country,” said a Netflix spokeswoman in response to a query by EL PAÍS regarding their estimated user base in Cuba.

Netflix did not explain whether it is somehow coordinating with the Cuban government in Havana to set up its service.

Netflix, which is headquartered in Los Gatos, California, launched its streaming service in 2007 and currently has 57 million subscribers in 50 countries. Spain is not on that list.