Netflix loosens its ties with Prince Harry and Meghan

Netflix is keeping its ties to Prince Harry and his wife, Meghan. But those ties are getting looser.

The production company for the Duke and Duchess of Sussex has signed a new deal with Netflix, the two companies announced Monday morning. But it's worth less for the royals than their last arrangement with the streaming giant, a person familiar with the deal said.

Under a deal signed in 2020, Netflix paid them for the exclusive rights to content from Archewell Productions, the couple's company. The new arrangement is a first-look deal, meaning that Netflix can say yes or no to new film or television projects before anyone else. That gives Harry and Meghan more options, but less investment from Netflix, a sign that the high-profile 2020 deal may not have met expectations.

Archewell had intended to make "inspirational family programming" in documentaries, docuseries, feature films, scripted shows and children's television under its earlier deal. But it hasn't made any children's television, feature films or scripted shows.

Rather, Archewell has produced documentaries and docuseries, including "Harry & Meghan," a show about the couple's exodus from the Royal Palace. A six-part series directed by filmmaker Liz Garbus and released in late 2022, the show generated 23.4 million views in its first four days, the most ever for a documentary on the service.

Three other documentary projects followed -- "Heart of Invictus," "Live to Lead" and "Polo" -- though they did not generate the same large audiences. This past March, the company released "With Love, Meghan," a cooking, gardening and hosting series starring Meghan. The show was criticized by some as out of touch, but praised by others as a refreshingly imperfect tutorial on keeping a home.

"With Love, Meghan," has attracted 5.3 million views since its debut, outpacing other cooking shows on the service. It has also allowed Netflix to partner for the first time directly with a talent on a consumer brand. Meghan's online product line "As Ever" is promoted on the show and features items like a $28 orange blossom honey and a $14 apricot spread. Netflix manufactures some of those products through its consumer product group and shares in the revenue generated.

"The response to their work speaks for itself," Netflix's chief content officer, Bela Bajaria, said in a statement. "Fans have been inspired by 'With Love, Meghan', with products from the new 'As Ever' line consistently selling out in record time."

Netflix isn't making as many all-encompassing deals as it did in the past. It scooped up a lot of the big talent years ago when boosting its production slate. Some, like the super-producer Shonda Rhimes and comedian Adam Sandler, outperformed. Others weren't as successful.

Higher Ground, the production company overseen by Barack and Michelle Obama, signed a four-year deal with Netflix in 2018 -- one that covers the company's entire overhead, including office space, employee salaries and a fund to develop new projects. It was re-upped for two more years and then last year transitioned to a first-look deal. Higher Ground won an Academy Award for the documentary "American Factory" and produced "Leave the World Behind," one of Netflix's biggest film hits on record.

There have also been tensions between Netflix and Archewell through the years, according to three people with knowledge of the relationship.

The streaming giant found out about the release date of Harry's memoir "Spare" just a few months before the documentary series about the couple was set to debut, said the people, who would speak only on the condition of anonymity. The Netflix series was released in two batches, on Dec. 8 and 15. "Spare" was released on Jan. 10. That upset some Netflix executives because the book covered some of the same ground as the series, undercutting the exclusive nature of the show.

An Archewell spokesperson, Meredith K. Maines, and a Netflix spokesperson, Emily Feingold, both said there was no tension between the two companies, calling the idea false.

At the same time, few projects beyond those focused on the couple have been put into production. "Pearl," an animated family series centered on a 12-year old girl, was canceled in 2022 while still in development. In 2023, Archewell hired a writer to produce a script based on the novel "Let's Meet at the Lake." No director or producer has been added to the project, though it is still in the works. On Monday, the companies also announced a new documentary short called "Masaka Kids, A Rhythm Within" that centers on an orphanage in Uganda that has created dance videos that have exploded online.

A Christmas special of "With Love, Meghan" is planned, and season two of "With Love, Meghan" will stream this month.

"We're proud to extend our partnership with Netflix and expand our work together to include the 'As Ever' brand," Meghan said in a news release.