Netflix said it has fulfilled its pledge to the Black community by moving two per cent of its cash holdings – around $100m – into Black-led banks and financial institutions in the US.
The streamer previously announced plans to tackle systemic racism in June last year amid moves from various US media giants to address racial equality protests, following the death of George Floyd.
This included investment to ensure that more home and small-business loans are distributed in Black communities.
“Because we pegged our commitment to 2% of Netflix’s case, the investment also grows overtime,” revealed Netflix director of human resources Aaron Mitchell and treasurer Shannon Alwyn in a blog post this week.
“So we will be ‘topping up’ our commitment at the end of the year and moving more cash — over and above the $100 million already committed — into these institutions.”
The funding has been shared between six institutions, including $10m deposited with Hope Credit Union in the form of a transformational deposit to fuel economic opportunity in underserved communities in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
A further $25m was invested as seed funding to establish the Black Economic Development Fund, managed by the Local Initiatives Support Corporation.
The fund invests in Black-led banks, anchor institutions, businesses, and real estate developers. It reached its $250m goal this year thanks to capital investments from 11 public and private companies, including Paypal, Costco, Square, and McKinsey and Company.
Netflix invested $10m with The Change Company to finance more Black homeowners fairly and responsibly, while $25m was invested as seed funding for the Enterprise Community Impact Note to support its Equitable Path Forward initiative.
The initiative supports historically marginalized housing providers in creating and preserving affordable homes in diverse communities.
One United Bank received $10m as the start of “an ongoing relationship,” while $20m was invested in Calvert Impact Capital’s Community Investment Note.
The funds are earmarked to support housing and community development projects focused on US BIPOC communities.
Netflix is also launching a web series today, Banking On Us, to highlight the real stories of how providing home and small-business loans can have an impact on Black communities.
The first episode, Investing in the Black Community, debuts today on YouTube.