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LONDON, Oct 3 (Reuters) - Italian broadcaster Mediaset will partner with video-streaming service Netflix to produce movies in Italy, a source close to the matter said on Thursday.
Like other European broadcasters, Mediaset, which is controlled by the family of former Italian prime minister Silvio Berlusconi, has struggled to counter an aggressive investment drive in content production by Netflix.
As well as pursuing pan-European growth outside its home market in Italy, Mediaset has struck a multi-year deal with Netflix to produce video content, the source added, without providing further details.
Mediaset Chief Executive Pier Silvio Berlusconi and Netflix's founder Reed Hastings will announce the agreement next week in Rome, two other sources with knowledge of the matter said.
Mediaset and Netflix declined to comment.
News of the deal comes as Reuters reported that Italian prosecutors have opened an investigation into alleged tax evasion by the U.S. firm, according to a source with direct knowledge of the matter. (Reporting by Elvira Pollina; editing by Emelia Sithole-Matarise)