Netflix to spend about $100 million to support African-American communities

FILE PHOTO: The Netflix logo is seen on their office building in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson/File Photo

(Reuters) - Netflix Inc will allocate 2%, or about $100 million, of its cash holdings to financial institutions and organizations that directly support African American communities in the United States, the streaming giant said on Tuesday.

The company said here in a blog post it will start with $35 million, of which $25 million will be moved to a new fund, "Black Economic Development Initiative", and $10 million will go to Hope Credit Union for creating opportunity in underserved communities.

The move comes as U.S. companies face increasing pressure from investors, consumers and workers to take action against widespread racial inequality after the death of African American George Floyd in police custody.

“This capital will fuel social mobility and prosperity in the low- and moderate-income communities these groups serve,” Netflix said on Tuesday.

Earlier this month, Chief Executive Officer Reed Hastings donated here $1 million to think tank The Center for Policing Equity, which promotes police transparency and accountability through its research.

Reporting by Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli