Microsoft and Netflix failed to agree on a $500M Xbox IP exclusivity deal, leading Microsoft to pursue smaller partnerships.
Failed exclusivity deal with Netflix
Microsoft and Netflix reportedly failed to reach an agreement on a potential exclusivity deal involving Microsoft's Xbox intellectual properties. According to sources familiar with the matter interviewed by Puck, Netflix had initially offered 500 million dollars to exclusively exploit the biggest intellectual properties of the Xbox ecosystem over a seven-year period.Microsoft's counteroffer
Microsoft countered with a proposal of 800 million dollars, which Netflix ultimately declined. The collapse of the discussions has led Microsoft to adopt a more flexible approach, moving away from a framework exclusivity contract linking all its licenses to a single entity.New strategy for Xbox
Instead, Xbox is now pursuing "smaller agreements with more partners" to avoid putting all its intellectual property in one basket. Microsoft emphasized that it is receiving record interest for its intellectual properties and noted that Netflix remains a valuable partner, citing upcoming collaborations such as the animated series Minecraft and Diablo.Netflix's response and Microsoft's focus
Netflix did not comment on the failed negotiations, while Microsoft stated it is focused on individual contracts to continue monetizing its licenses with the most generous streaming platforms.
