Microsoft and Netflix negotiations fail over Xbox adaptation rights

Negotiations between Microsoft and Netflix to secure a seven-year exclusivity deal for Xbox intellectual property adaptations have reportedly fallen through. According to reports from Puck, Netflix offered $500 million to license Xbox franchises for film and television series, while Microsoft countered with a demand for $800 million.

The $300 million gap between the two parties led to the breakdown of discussions. The proposed deal would have focused on audiovisual licensing rather than the sale of game titles or changes to Xbox Game Pass availability. The collapse of the talks may have been influenced by leadership changes at Netflix, specifically the departure of content chief Bela Bajaria in October.

In response to the reports, Microsoft noted record-breaking interest in its intellectual property and described Netflix as a valuable partner. Rather than pursuing a single comprehensive exclusivity deal, Microsoft is reportedly looking to spread its bets by striking smaller agreements with multiple partners to expand its transmedia presence.