Sussexes' UK Return Caps Failed $100M Netflix Media Push

Prince Harry and Meghan Markle are moving back to the U.K. after six years in California, enrolling their two children in British schools as their $100 million Netflix-backed media ventures wind down.

"The Sussexes needed a brand refresh," said Ingrid Seward, editor in chief of Majesty Magazine, noting that the couple's efforts to build a media empire in Hollywood have run out of steam.

Netflix pulled funding for the couple's production company and Meghan's As Ever brand, while the Archewell Foundation dissolved in December. Spotify's $20 million podcasting deal ended in 2023 after producing just one show.

The move closes a six-year American chapter and raises questions about how the couple will rebuild their commercial and philanthropic footprint in a market where just 27 percent of Brits view Harry favorably and 18 percent view Meghan favorably, according to YouGov.

King Charles was informed of the relocation plans on Sunday, Aug. 16, and welcomes the opportunity to spend more time with his son and grandchildren, according to people familiar with the matter. The couple met privately with the king at his Highgrove estate in July — the children's first reunion with their grandfather in more than four years — a meeting kept secret from the press.

The Sussexes will not resume full royal duties. They plan to keep their Montecito, California, home and their vacation property in Portugal while establishing a private, non-royal residence in Britain, according to The Telegraph, which first reported the move. The location of the family's new home and the children's school are being closely guarded.

A Hollywood Push That Fizzled

When Harry and Meghan arrived in Los Angeles in 2020, the streaming boom was at its peak. Netflix signed the couple to a deal worth up to $100 million, and Spotify followed with a $20 million podcasting pact. But the couple struggled to find success with projects that didn't mine their personal lives. Harry's memoir, "Spare," was a massive bestseller, and the six-part Netflix documentary "Harry & Meghan" was a top-rated show, but non-royal projects floundered and the Archewell production office experienced significant staff turnover.

Netflix declined to renew the deal, instead opting for a first-look arrangement that ended its funding of the company. Earlier this year, the streamer also stopped funding Meghan's As Ever brand, which had launched as American Riviera Orchard before rebranding. The lifestyle company, an online seller of jams, dried flowers and other home goods, failed to take off.

In December, employees at the Archewell Foundation were told the nonprofit was dissolving, a decision that blindsided staff who had been working with the couple on initiatives from online bullying to vaccination campaigns.

A Complicated Homecoming

The couple's return comes with significant reputational hurdles. Just 27 percent of Brits have a positive opinion of Harry, and Meghan's approval sits at 18 percent, according to YouGov. The couple's acrimonious departure in 2020, followed by their Oprah Winfrey interview, the Netflix docuseries and Harry's tell-all memoir, deepened public skepticism.

Harry also faces unresolved legal battles. He lost a privacy case against Associated Newspapers, publisher of the Daily Mail, last month, and is expected to pay a hefty sum. He has been sued for defamation by Sentebale, a charity he co-founded to honor his late mother, Princess Diana. And his relationship with his brother, Prince William, remains distant, with "no contact," according to people familiar with the matter.

Security has long been an obstacle. After stepping back from royal duties, the couple lost their taxpayer-funded police protection, prompting Harry to wage a years-long legal battle. He lost an appeal last year challenging the government's decision to reduce his publicly funded security.

The move is the clearest sign yet that Harry believes his family's security concerns have reached a point where he feels comfortable basing Meghan and their children in Britain once again. Those close to the Sussexes believe they have successfully executed the "half in, half out" model the couple proposed to the royal family in 2019.

With a base in Britain, Harry will be able to spend more time with charities including Scotty's Little Soldiers and WellChild, as well as the Invictus community, while Meghan continues leading As Ever from the couple's international bases.

This article is for informational purposes only and does not constitute investment advice.