NETFLIX bosses have told The Duke And Duchess Of Sussex they will pull the plug on their multi-million-dollar deal at any point if they are unhappy with what they produce, according to an industry insider.
The couple and their team at Archewell, who were reported to have signed a $100m contract, were advised there are “no guarantees” what they create will air.
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And it could mean they end up losing millions as they are yet to launch a show on Netflix and now allegedly want to edit the content produced for their new docu-series, according to Page Six.
The Sussexes reportedly want to review the tone of some statements and potentially delay its release until 2023 despite it being scheduled for released later this year.
However, executives at the billion dollar broadcaster have “final edit” decisions where they can veto their client’s proposals or even end business deals.
It is likely if the service doesn’t green light any of their shows they will still receive a kill fee, as is standard within the industry.
Netflix has already walked away from Meghan’s project, Pearl, after deciding the content was not what they wanted.
A Netflix LA based consultant told The U.S. Sun: “Harry and Meghan are in a tricky place right now.
“Sure they may have concerns about the content in the can and what they said on camera about the Royals, but Netflix hold the power.
“In reality it is their outlet and they have final say on what is broadcast. No talent is greater than Netflix.
“So while there may be concerns or push back from The Sussexes on what they want to present on screen, Netflix can carry on.
“And should the streamer’s executives become frustrated, feel like a stalemate has been reached, or frankly just get fed up, they are entitled to walk away altogether.
“The Sussexes and their team knew that going into this deal. Just because they are a Duke and Duchess makes no difference. If no settlements or agreements are reached the deal could fold.”‘
The source explained that development deals in Hollywood end like this “all the time,” and at the time of agreeing to a contract for a project all the parties share common goals.
DEAL COULE FOLD
“However, if those goals are not met or the parties are at odds then everyone walks away amicably,” they said.
“Certainly no-one is pushing around Netflix executives. With the utmost respect to Harry and Meghan this is one deal within a multitude of content decisions the executive team discusses daily.
“And sure, while they are high profile, this deal is a business transaction.
“Netflix struck a deal with the promise of exclusive insight into the lives and outlook of The Sussexes, which they felt would be a ratings success.
“If they are uncertain that the content will produce the ratings they desire, then that becomes a problem.
“At pitch and content production meetings it is made clear that Netflix prides itself as an independent editorial broadcaster.
“They do not simply release whatever contributors serve up to them – they can go to Youtube for that.”
The U.S. Sun has reached out to Netflix and Archewell for comment, but did not hear back.
The source is adamant that Netflix has not and will not pay The Sussexes’ reported $100m.
‘NO BIG PAYOUT’
He added: “They got a couple of million for development up front but that is just a small balance which Netflix would see as a necessary loss.”
In May, The Sun revealed the enormous fee related to the Netflix deal is not “the full picture.”
A source said: “On the surface this large sum seems enormous, but the truth is that their deal is all about budgets when shows get commissioned.
“Sure, they may have a couple of million in an advanced development deal to produce ideas, concepts and film pilots, but they have not been handed one hundred million.
“In reality those sums would be handed over to cover the entire production cost of the project, with Archewell providing a breakdown on fees for all aspects of the making of the show.
“Included in that would be a broad understanding of the profits too for the company.
“Some deals see companies achieve as much as 20 percent of that total, while others can earn half that figure. Every deal is different.
“But fees for writers or executive producers, like the Duke And Duchess, are often specific amounts outlined in production budgets.”
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