Netflix's ambitious plans to secure exclusive film and TV rights for Xbox intellectual property reportedly stalled due to a significant financial disagreement. According to a report by Matthew Belloni for Puck News, Netflix initially proposed a seven-year deal worth $500 million to license Xbox titles for adaptation.
However, Xbox leadership, including CEO Asha Sharma and the brand's business affairs team, countered with a demand of $800 million. This substantial increase prompted Netflix to withdraw its offer, effectively ending the negotiation for an exclusive partnership at that time.
While Netflix has not officially commented on the matter, Xbox conveyed to Belloni that it has experienced "record-breaking interest" in its intellectual property. The company also stated that it continues to value Netflix as a potential partner for future projects.
Xbox appears to be shifting its strategy towards pursuing smaller, more diverse deals with multiple partners. This approach is already evident with ongoing projects such as the Diablo animated series in development at Netflix, a second season of Fallout at Prime Video, a Call of Duty movie at Paramount, and a sequel to "A Minecraft Movie" being produced by Warner Bros. Pictures.
In parallel, Xbox is expanding its multimedia presence with the recent announcement of Xbox XP. This new division is dedicated to developing film, television, merchandise, theme parks, and live events, and will be led by Lucasfilm veteran Kayleen Walters. Xbox Pictures, a subdivision under Xbox XP, will focus on developing film and television projects, alongside other forms of "linear storytelling" leveraging Xbox's extensive IP portfolio.