In a shocking turn of events, streaming giant Netflix is seeking the return of its $11 million investment from filmmaker Carl Eric Rensch.
The funding was provided to produce a highly anticipated sci-fi show, but Rensch allegedly squandered the money on risky stock trading and other investments.
This revelation comes after reports that Netflix has also taken similar action against Meghan and Harry, demanding the return of their upfront fee.
According to inside sources, Netflix poured a staggering $40 million into Rensch’s show, granting him extensive creative freedom and budgetary control.
However, despite the substantial investment, not a single finished episode was delivered.
As a result, Rensch and Netflix are now embroiled in a confidential arbitration proceeding initiated by the filmmaker himself.
Rensch claims that Netflix breached their contract and owes him a whopping $14 million in damages.
Netflix, on the other hand, vehemently denies any wrongdoing and asserts that it actually wired an additional $1 million to Rensch’s production company, bringing the total expenditure to over $55 million, as confirmed by members of the show’s casting crew.
The troubles began for Carl Eric Rensch soon after signing the contract with Netflix for the production of the Conquest series.
Sources reveal that he exhibited erratic behavior, which raised concerns among Netflix executives.
In a surprising twist, it has now come to light that Netflix is also demanding the return of the upfront fee from Meghan and Harry, as their contract cannot be extended.
Last September, the royal couple inked a five-year, $100 million deal with Netflix to produce a range of content, including documentaries, docuseries, feature films, scripted shows, and children’s programming.
However, following the failure of their documentary, “Harry’s Heart of Invictus,” the duo has been unable to deliver any new projects.
They have reportedly failed to meet the agreed-upon production principles, leaving Netflix dissatisfied.
Renowned royal expert Neil Shaw asserts that the hefty $100 million deal has put Harry and Meghan in a precarious position, as Netflix demands answers regarding their promised content.
The streaming giant is particularly interested in a new film from the couple, separate from the troubled production of Carl Eric Rensch.
It is worth noting that Meghan and Harry are unlikely to engage in stock trading, instead preferring to allocate funds towards their personal security and other ventures.
The financial implications of these multi-million dollar deals extend beyond the Sussexes themselves.
The subscriber rates for Netflix are set to increase, with the most expensive service rising to $17.99 per month in the UK and $23 in the US.
Even the three lowest pricing options will now cost $7.99 in the UK and $12 in the US.
In comparison, the Kardashians recently signed a $100 million deal with Hulu for two seasons, which is expected to be divided among the entire cast.
Regardless of how it is split, the sum becomes significantly smaller, especially when considering the six main characters alone.
It is clear that the Harkles, as they are affectionately known, cannot expect to receive a similar payout.
While it is true that Meghan secured a lucrative $400 million deal in 2022, the current project with Netflix is unlikely to yield $100 million.
Without additional projects on the horizon, the value of their Netflix deal may diminish unless they can deliver more content.