Netflix Reportedly Offered $500 Million for Exclusive Film and TV Rights for Xbox IP Before Deal Fell Through

Microsoft and Netflix were reportedly in talks over film and television adaptations of Xbox franchises, but a potential deal fell through following a leadership shuffle at the streamer this month. The entertainment giant is believed to have offered $500 million to exclusively license Xbox IP for seven years. The Xbox parent reportedly sent a counter, but by then Netflix's content chief Bela Bajaria was gone from the company.

The information comes from noted Hollywood insider Matthew Belloni, who first reported the ouster of Bajaria from Netflix on October 15. Citing three sources in a new report for Puck, Belloni claimed the erstwhile Netflix CCO offered Microsoft $500 million (roughly Rs. 4,756 crore) for an exclusive film and TV license for Xbox titles for seven years. Xbox CEO Asha Sharma reportedly countered increased terms at $800 million (roughly Rs. 7,611 crore), but with the firing of Bajaria the deal fell through.

According to the report, Netflix CFO Spence Neumann was among executives at the streamer who thought Xbox's counter was too high.

Bajaria, who had been at Netflix for a decade, reportedly fell out of favour at the company amidst dwindling engagement and viewing numbers and declining stock price. Bajaria has been replaced by Peter Rice, a former Disney executive, as the new chief content officer at the streamer. He is expected to pursue more IP deals for external franchises, the report said.

Xbox Film and TV Initiatives

Xbox, meanwhile, is reportedly going after smaller deals with more partners instead of a larger exclusive agreement. “We have received record-breaking interest in our IP; Netflix is a valued partner and we are excited for the forthcoming release of our Minecraft and Diablo animated series together, among other adaptations,” the company said in a statement to Puck.

The development comes weeks after Xbox announced XP, a new division for film and television, consumer products, strategic partnerships, and live experiences. XP is headed by led by newly appointed president, Kayleen Walters.

The division will focus on four investment areas: Xbox pictures, for film and TV; Xbox products, for merchandising; Xbox places, for live events and experiences; and Xbox partnerships, for brand and creator collaborations.

Sharma has previously stated Xbox's ambition to be the number one entertainment company in the world, and it is clear the company intends to capitalise on its broad catalogue of IPs beyond gaming. Microsoft has found success with film and TV adaptations of its franchises like Minecraft and Fallout. A feature film adaptation of Call of Duty is currently in the works at Paramount. Netflix, on the other hand, is working on an animated Diablo series. 

In September, Xbox announced it was expanding its partnership with Hideo Kojima's Kojima Productions to publish Physint, the upcoming action-espionage title which was previously dropped by Sony. In addition to the publishing agreement, the two companies will also collaborate on film and television adaptations.