Xbox rejects Netflix's $500M IP adaptation offer, counters at $800M as deal collapses

Netflix offered Xbox $500M for seven years of exclusive film and TV rights. Xbox countered at $800M, a 60% increase, covering its entire IP catalog. Talks collapsed after Netflix's content chief Bela Bajaria left amid 1,000 layoffs. Xbox now pursues smaller deals with multiple partners instead of one exclusive deal.

Netflix's then chief content officer Bela Bajaria made the $500M offer, per Puck's Matthew Belloni.
Xbox CEO Asha Sharma and the team countered at $800M for the same term.
The proposed deal covered Xbox's full catalog, including Halo, Gears of War and Fable.
Bajaria departed Netflix amid 1,000 layoffs before the sides could negotiate further.

Microsoft launched Xbox XP in early October, a division for film and TV expansion.
Xbox's earlier exclusive bet, the Paramount Halo series, was cancelled in July 2024.
Xbox and Netflix still run non-exclusive projects: Minecraft and Diablo animated series.
"We have received record-breaking interest in our I.P.; Netflix is a valued partner and we are excited for the forthcoming release of our Minecraft and Diablo animated series together, among other adaptations." - Xbox, statement to Puck

Xbox is now pursuing smaller deals with multiple partners rather than one exclusive arrangement.
Netflix's Cyberpunk: Edgerunners, one of its most successful game adaptations, returned this week.
Amazon released a Fallout series and Warner Bros released a Minecraft adaptation, both non-exclusive.
Netflix declined to comment on the collapsed negotiations.

For Publishers & Developers: Pitch mid-tier franchises to Netflix while its game-adaptation slate lacks an anchor catalog.
For Investors & VC: Add per-franchise screen-licensing value to valuation models for IP-rich studio targets.
For Service Vendors: Pitch lore-bible and asset-packaging services to publishers running multi-partner adaptation pipelines.