Microsoft has changed their approach to the film/tv adaptation of Xbox games. That’s significant because it indicates how they intend to monetize large franchises (like Minecraft, Diablo etc) without the need of some huge one partner. The lack of exclusivity opens up the possibilities for a wider array of flexible partnerships within the industry.
Microsoft pivots from exclusive licensing to flexible partnerships
The head of Xbox Asha Sharma and team initially wanted exclusivity with Netflix. They were requesting $800 million to secure exclusive rights to adapt Xbox IP for 7 years. Netflix came back with an offer of $500m for exclusive rights. The deal fell apart when Netflix exec Bela Bajaria left during layoffs.
Microsoft has created an Xbox XP division to handle the growth of game universes into other media. They’re no longer looking for this one huge exclusive contract. Instead, they’re looking at a series of smaller deals with different partners.
This gives Xbox the flexibility to experiment with different types of media and distribution channels. They don’t have to lock down all their IP into one deal.
Even though they didn’t secure the exclusive deal, Microsoft and Netflix will still be working together on certain projects. Xbox has said they’re seeing a record interest in their IP. They’ll move forward on co-producing animated series for Minecraft and Diablo.
They refer to Netflix as a valued partner. And they’re excited for the upcoming adaptations.
This is part of a bigger strategy to diversify revenue streams beyond hardware and subscriptions. Xbox XP division will be seeking out partnerships in movies, tv and other media. You should see more frequent announcements for specific game adaptations (instead of this one big deal). Buyers and fans.
Source: IXBT
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