Netflix is seeking a refund from Meghan Markle and Prince Harry after the couple allegedly wasted a significant amount of money on security and public relations posts without producing any content.
The streaming giant had initially invested $11 million in filmmaker Carl Eric Rinch to create a sci-fi show, but now wants its money back due to Rinch’s risky stock trading and investments.
A source close to an insider also revealed that Netflix has taken similar action against Meghan and Harry.
The streaming service reportedly spent over $40 million on Rinch’s show, granting him full creative freedom and budgetary control.
However, despite their investment, Netflix claims it has not received a single completed episode.
As a result, Rinch and Netflix are currently engaged in a confidential arbitration proceeding, with Rinch seeking $14 million in damages for breach of contract.
Netflix, on the other hand, argues that it owes Rinch nothing and has actually provided an additional $11 million to his production company, bringing the total expenditure to over $55 million.
According to members of the show’s casting crew, Rinch’s behavior became erratic soon after signing the contract with Netflix for the production of the Conquest series.
Meanwhile, Netflix is also demanding the return of the upfront fee from Meghan and Harry, as their contract cannot be extended.
In September 2020, the couple signed a five-year, $100 million deal with Netflix to produce various types of content.
However, following the failure of their documentary and Harry’s Invictus project, the couple has been unable to fulfill their obligations and produce new content.
Royal expert Neil Sean suggests that the $100 million deal has put Harry and Meghan in a difficult position, as Netflix is now demanding answers regarding their promised content.
Unlike Rinch, who allegedly wasted money on stock options, Meghan and Harry are believed to have directed their funds towards celebrity security teams and media coverage.
This has caused frustration among Netflix subscribers, as they are indirectly financing these expenses through their subscription fees.
Consequently, Netflix has increased its pricing, with the most expensive service now costing $17.99 per month in the UK and $23 in the US.
The ad-free lowest pricing option will now be $7.99 in the UK and $12 in the US.
While the Kardashians recently signed a $100 million deal with Hulu for two seasons, it is expected that the amount will be divided among the entire cast.
In contrast, the Harkles, as Meghan and Harry are commonly referred to, are unlikely to receive such a substantial sum for their project.
Furthermore, they currently have no other announced projects, making the estimated worth of their Netflix deal significantly lower.
The $100 million they received is merely an advance payment on a longer contract.
If they fail to generate the necessary revenue and continue producing new content, they will be obligated to return the money.
In conclusion, Netflix is demanding a refund from Meghan Markle and Prince Harry due to their failure to deliver content as promised.
The streaming service is also seeking reimbursement for wasted expenses on security and public relations.
This turn of events has raised questions about the couple’s ability to fulfill their multi-million dollar deal with Netflix and has resulted in increased subscription costs for users.