At an event in Rome to present the accord, the streaming company behind hit shows The Crown and Stranger Things also announced it would open offices and pay tax in Italy, in a bid to boost local authorities which have pursued international tech giants on charges of dodging tax.
The partnership comes amid heightened competition in the crowded European television market, which has been further intensified by the growing popularity of on-demand streaming services such as Netflix.
In turn, Netflix is stepping up strategic tie-ups in Europe to combat new streaming rivals such as Disney and Apple.
Last month it signed a deal with France’s Canal+ to add Netflix subscriptions to TV bundles.
Under the deal, Netflix and Mediaset, which is controlled by the family of media mogul and former prime minister Silvio Berlusconi, will co-finance seven movies shot in Italy by independent local filmmakers.
The movies will be available on Netflix from next year.
Meanwhile, Mediaset will broadcast the Netflix-branded movies on its free-to-air channels in Italy 12 months later.
The first five films include The Divine Ponytail, a biopic on Italian soccer star Roberto Baggio, Caught By A Wave, a teenage romance set in Sicily and The Last Paradise, the true story of a 1950s Apulian farmer caught between social reform ideals and his love for a landowner’s daughter.
Netflix entered the Italian market in 2015 and has more than 2 million subscribers in Italy.
