Harry and Meghan's £75m Netflix deal has been an 'expensive failure' for streaming giant, admit insiders - and miffed bosses feel 'undercut' by Duke's memoir Spare

Daily Mail​

a day ago

Meghan Markle and Prince Harry are said to be 'absolutely over the moon' with their new Netflix deal - but behind the scenes there are claims the couple have been an 'expensive failure' for the streamer.
The Duke of Sussex's biography 'Spare' is said to have 'upset' Netflix executives who felt it was 'undercutting' the docu-series that they had paid a fortune for, it has also been claimed by insiders.
'The $100million deal has been an expensive failure for Netflix, however they want to dress it up', one source told the Daily Mail today.
An insider with knowledge of the deal told The New York Times the Sussexes' new deal is less lucrative and 'a sign that the high-profile 2020 deal may not have met expectations'.
Archewell Productions, Meghan and Harry's media company, had said it would make 'inspirational family programming' in documentaries, docu-series, films, scripted shows and children's television when the $100million (£75million) deal was announced in 2020.
But in those five years, Archewell has not made any children's television, feature films or scripted shows at all.
Pearl, the working title for the Markle-created animated show about a 12-year-old, was cancelled in 2022.
The Sussexes then announced in August 2023 that they would be producing a film of romantic novel Meet Me At The Lake - but two years on Archewell is reportedly yet to hire a director or pick a cast. Sources have claimed 'it may never happen'.
Meghan Markle and Prince Harry are said to be 'absolutely over the moon' with their new Netflix deal
Meghan said in a statement that she and Harry are 'proud' and 'inspired' to extend their 'creative partnership' - but experts have said their relationship has been 'downgraded' because it is a 'first look' deal - meaning Netflix will have first refusal on Sussex projects but is not compelled to make them.
The Duchess of Sussex in her Netflix series With Love, Meghan which came out in March. Season 2 is on the way
The couple yesterday signed a new 'multi-year' contract with the streaming giant, however, it is understood to be worth much less for the pair than their previous contract.
Experts have pointed out that their relationship has been 'downgraded' deal because it is a 'first look' - meaning Netflix will have first refusal on Sussex projects but is not compelled to make them.
Meghan said in a statement that she and Harry are 'proud' and 'inspired' to extend their 'creative partnership'. Bela Bajaria, Netflix's Chief Content Officer, insisted: 'Harry and Meghan are influential voices whose stories resonate with audiences everywhere.
But three sources at the streaming giant have told the New York Times of 'tensions' over the years. There were similar reports of tensions between the Sussexes and Spotify before their deal ended, with one executive branding them 'grifters'.
The NYT has claimed that Netflix bosses were upset when they only found out about the release date of Harry's bestselling memoir 'Spare' a matter of months before the docu-series come out over consecutive weekends in December 2022.
Spare came out on January 2023 but this 'upset some Netflix executives because the book covered some of the same ground as the series, undercutting the exclusive nature of the show', the newspaper said.
Spokesmen for Archewell and Netflix have said there 'was no tension between the two companies', calling the notion 'false'.
The 'first-look' arrangement announced yesterday means Netflix can say yes or no to new film or television projects before anyone else - allowing them to pick and choose what they invest in.
PR expert Mark Borkowski described the new deal as a 'downgrade', claiming it falls a long way from the jackpot figure of Harry and Meghan's original contract in 2020.
He told the Daily Mail: 'I think Netflix has done a very neat job of pivoting away from two very expensive people who didn't deliver, and they've taken that deal off the table, and they've given them a modest one.
'It's not like they're gradually uncoupling – it's a downgrade. Netflix are not going to expose themselves to those budgets again. It's Netflix saying, 'Let's have a look at your content, but we'll pick and choose, mate'.'
He believes the pair will be paid for each production selected by Netflix rather than receiving an overall fee, such as the reported $100million of their first deal.
'I would be surprised if it's not pay-as-you-go and it's well, well below that first mark,' he added.
The couple's new output will include a second season of the Duchess's 'With Love, Meghan' lifestyle show later this month, as well as a Christmas special in December.
The Sussexes are also working on 'Masaka Kids, A Rhythm Within' - a documentary about orphaned children in Uganda, where the 'shadows of the HIV/Aids crisis linger'.
There is also 'active development' on other projects with Netflix which 'span a variety of content genres', including an adaptation of romantic novel Meet Me At The Lake.
But Mr Borkowski said the couple will not be granted the same budget as they were under their previous contract with the streaming service.
'They have shot the golden goose of 2020 - more of a 'we'll call you' than 'here's the chequebook',' he said.
'It's a first-look deal, which means Netflix gets first dibs but no obligation to bankroll every semi-royal whim.
'I reckon Netflix is trimming fat industry-wide, so this is less carte blanche, more curated cameo.
'They're still in business together - Meghan's. As ever brand and seasonal specials keep them in the Netflix shop window but make no mistake, this is a slimmed-down sequel to the blockbuster original. So Harry and Meghan's new Netflix chapter [is] less champagne budget, more Prosecco by the glass.'
The couple's new output will include a second season of the Duchess's 'With Love, Meghan' lifestyle show later this month, as well as a Christmas special in December
Netflix has already released the first series of With Love, Meghan as well as Polo, Heart of Invictus, Live to Lead and the couple's bombshell documentary Harry & Meghan as well as being a business partner on Meghan's lifestyle brand, As Ever.
Five years ago, Harry and Meghan secured a lucrative contract thought to be worth $100million (£74million) with Netflix after quitting as senior working royals in 2020.
The renewed deal was described by the Sussexes - who made the announcement with Netflix - as 'extending their creative partnership' through Archewell Productions.
But the new terms are understood to be worth less for Harry and Meghan than their previous contract, according to a person familiar with the deal, and represent Netflix loosening its ties with the couple.
In a statement, Meghan said: 'We're proud to extend our partnership with Netflix and expand our work together to include the As Ever brand.'
Netflix chief content officer Bela Bajaria said: 'We're excited to continue our partnership.'