Netflix offered Microsoft $500 million for exclusive rights to Xbox IP

Netflix wanted exclusive rights to Xbox IP, but Microsoft wanted $800 million to make it happen

Netflix has reportedly been pursuing a deal with Xbox for exclusive rights to the company’s IP, offering $500 million as part of a seven-year deal that would let it create streaming content based on its key franchises. According to Puck, the deal fell through after Microsoft asked for $800 million to make it happen. The deal would have secured Netflix film and TV rights to Xbox IP and characters.

Netflix declined to comment on the deal, but Xbox said the following. Microsoft is reportedly more interested in “smaller deals with more partners”, than larger overarching deals. Perhaps this is why Microsoft asked for 60% more than what Netflix reportedly offered.

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

Gaming IP has become incredibly popular content for streaming/filmic adaptations. Popular examples include The Last of Us, Fallout, Cyberpunk: Edgerunners, and The Witcher. Netflix has many of its own gaming adaptations, including Arcane (based on League of Legends), Castlevania, Devil May Cry, and The Cuphead Show.

Microsoft/Xbox owns a lot of gaming IP, and Netflix likely doesn’t have the resources to make a new film or series based on all of Microsoft’s biggest gaming properties. With this in mind, it makes sense that Microsoft is taking a more case-by-case approach to licensing its IP. Microsoft could make much more money licensing its IP to multiple buyers instead of tying everything up in a single deal.

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