Microsoft and Netflix have reportedly abandoned negotiations over a major licensing agreement that would have allowed the streaming platform to produce exclusive movies and television shows based on Xbox franchises.
According to people familiar with the discussions, Netflix initially offered Microsoft $500 million for seven years of exclusive adaptation rights. However, Microsoft reportedly demanded $800 million, and the two companies were unable to reach an agreement.
The proposed arrangement could have covered several Xbox properties, giving Netflix access to established gaming franchises for future entertainment productions.
Neither company has officially confirmed the financial terms of the reported negotiations.
Netflix Reportedly Offered $500 Million for Seven Years of Xbox Rights
The negotiations reportedly began after Netflix approached Microsoft about securing exclusive film and television rights to Xbox intellectual properties.
The streaming company proposed a seven year agreement worth $500 million, potentially giving it substantial control over adaptations of selected Xbox franchises.
Microsoft reportedly considered the offer insufficient and requested $800 million instead.
The disagreement ultimately caused discussions to collapse.
It remains unclear which franchises were included in the proposed agreement or whether Netflix was seeking rights to every Xbox property.
An Xbox spokesperson acknowledged strong interest in Microsoft's intellectual properties while describing Netflix as a valued partner.
The company also highlighted its continuing collaboration with Netflix on upcoming Minecraft and Diablo animated projects.
Netflix has not publicly commented on the negotiations.
Microsoft Could Pursue Separate Deals With Multiple Streaming Platforms
Following the reported breakdown, Microsoft is said to be considering smaller licensing agreements with different entertainment companies.
This approach could allow individual Xbox franchises to receive adaptations through separate streaming platforms and production studios.
Microsoft has previously worked with Paramount on the live action Halo television series.
The show premiered in 2022, received a second season in 2024, and was subsequently canceled.
Netflix also has considerable experience producing adaptations of gaming franchises, including Castlevania, Cyberpunk, Tomb Raider, and The Witcher.
These existing productions demonstrate the continued interest in bringing established video game properties to television.
Xbox Adaptation Rights Remain Available for Future Agreements
Microsoft's reported decision could provide greater flexibility when negotiating individual licensing arrangements.
Rather than granting one streaming company extensive exclusivity, Xbox could explore separate partnerships based on particular franchises.
However, there is no confirmation that Microsoft will earn more through this approach.
The future of the Netflix negotiations also remains uncertain, including whether discussions could resume for individual properties.
For now, Microsoft retains control over its Xbox adaptation strategy while continuing previously announced entertainment collaborations.
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