Royal officials ‘will examine Prince Harry and Meghan Markle’s Netflix deal’ after they agreed to approval of any new commercial ventures when they quit public life.
A palace source claimed that despite ditching official duties any profit-oriented plans would be ‘subject to discussion’.
There are questions over how it will look to the taxpayer when the Sussexes have still not paid off the £2.4million spent on refurbishing Frogmore Cottage in Windsor.
Harry and Meghan said on Wednesday they had founded a production company to make documentaries, feature films, scripted shows and children’s programmes.
They vowed to make ‘impactful content that unlocks action’ and name-checked Netflix chief executive Ted Sarandos and spoke of the firm’s ‘unprecedented reach’.
They are expected to make content including on ‘mental health’, an animated series about women, a nature documentary and shows on community service.
A palace source claimed that despite ditching official duties any profit-oriented plans from the Sussexes (pictured in February last year) would be ‘subject to discussion’
There are questions over how it will look to the taxpayer when the Sussexes have still not paid off the £2.4million spent on refurbishing Frogmore Cottage in Windsor. Pictured: The Queen
The source told the Mirror: ‘Harry and Meghan did leave as working members of the family with everyone’s best wishes and it is sincerely hoped they find the happiness that appeared to be lacking in their lives.
‘However, it goes without saying any deals they are making will be scrutinised by the royal household.
‘Under the terms of their deal to forgo their royal duties, they agreed any commercial deals would be subject to discussion.’
Harry and Meghan got the green light to broker commercial deals in January – but the moneymaking projects will be scrutinised by the Queen after a year.
The historic agreement ruled the couple will drop their HRH titles, pay back £2.4million of taxpayer cash and no longer receive public funds.
In exchange, they were allowed to quit frontline duties and given licence to expand their Sussex Royal brand.
Yet Her Majesty, who is understood to be anxious the couple could use their royal credentials to line their pockets, will be watching them closely.
Insiders told MailOnline the blueprint thrashed out at Sandringham is subject to an annual review in the Spring of 2021, although a date has not yet been confirmed.
Prince Harry and Meghan Markle plant flowers during an LA pre-school visit last weekend
Harry and Meghan’s new $14million home in Santa Barbara where they moved this year
The Netflix pact was compared to the Obamas $65m deal which saw the former president’s production company win an Oscar with his first film American Factory.
The Sussexes, who recently bought a $14 million mansion in Santa Barbara on a mortgage, stepped into Hollywood after ditching royal duties in March.
But public relations expert Mark Borowski said the couple had put a lot of pressure on themselves to succeed.
He told MailOnline: ‘An old Hollywood friend of mine once told me you can never have too big a hit. But you have got to manage expectations.
‘When you switch on the hype machine you have got to deliver. If it’s something that lets people down it’s going to backfire.
‘If you pull it apart, who wouldn’t want Harry and Meghan – it’s huge publicity for Netflix.
‘But for Harry and Meghan, they just understand this media circus. They have been naïve.
What to expect from Megflix? Harry and Meghan’s film projects in their own words
Our lives, both independent of each other, and as a couple have allowed us to understand the power of the human spirit: of courage, resilience, and the need for connection,’ they said.
Through our work with diverse communities and their environments, to shining a light on people and causes around the world, our focus will be on creating content that informs but also gives hope.
As new parents, making inspirational family programming is also important to us, as is powerful storytelling through a truthful and relatable lens.
We are pleased to work with Ted and the team at Netflix whose unprecedented reach will help us share impactful content that unlocks action.
‘This is a money-raising exercise. They have got this inferiority complex they are going to have to come back cap in hand to the Royal household.
‘It all sounds great, but what have you got? What names are attracted, what is the first project?
‘It’s like someone in the pub saying ‘I am going to start making productions for Netflix’.
‘This is incredibly dangerous and overhyped, they have got no chance to fail, they have got to succeed. If they lose they have got a lot of egg on their face.
‘For Harry and Meghan, this whole shooting match that they get involved with, it heaps a lot of pressure on them.
‘They are looking for attention all the time. On this occasion I think they may have overstepped the mark.
‘The proof is obviously in the pudding. It’s going to be very difficult, hits are very hard to come by. How many Downton Abbeys, The Crowns and Ordinary Peoples are there? They are from British producers who will tell you that you have got to have a few flops to make before you get a hit.
‘This is a naïve double-act, who are living on hype.’
Professor Jonathan Shalit OBE, Chairman of InterTalent, said he thought the par would be a hit.
He told MailOnline: ‘Of course they have to deliver. They are going to have a fantastic time working with them, they are both bright, intelligent, young people.
‘I think it will be a huge success, when you are judging success on Netflix it’s different from a terrestrial network.
‘Netflix are not driven by ratings, it’s more about the portfolio they offer.
‘Meghan and Harry will be appealing to subscribers and they are alongside the Obamas.
‘I think it’s an equally brilliant deal for both the couple and Netflix. It also solves their financial problem overnight.’
British TV producer Gub Neal, of award-winning hit The Fall, said he thought it was a good move and Netflix could have been attracted to their woke credentials.
Mr Neal, creative director of Ringside Studios, told MailOnline: ‘From a branding point of view Harry and Meghan, they are kind of woke and there is a lot of appetite for them.
Prince Edward at the launch of his production company Ardent, later closed in 2009
‘A lot of people have had very successful conversions in the market whether it’s the Obamas or Michael Portillo, why should Harry and Meghan be any different?
‘If I was at Netflix I would think the deal was a no-brainer. The question is really will Meghan and Harry be persuadable to the right people and right subjects.
‘Viewers will by buying into them, not particularly their production skills. I think what Meghan and Harry will have the advantage of is being more relaxed and less restrained away from the Royal family.
‘I would think it’s a great deal for Netflix and it’s not a bad deal for Meghan and Harry.
‘To be seen to be working and not just living a ‘playboy lifestyle’ – this is a great way to declare they are working.
‘This is conspicuous way of saying we do have a purpose. You can do woke and adventure at the same time.
‘You can be environmentally crusading and at the same time making exciting programmes.’
He added: ‘For Netflix it is going to be very appealing – I think it’s great recipe for both sides.’
Public paperwork for their Archewell firm in America, gives a flavour of the topics the Sussexes are likely to focus on in their films.
Filings mention the areas of sport, mental health, as well as physical fitness, children’s programming and even cartoons.
Royal expert Ingrid Seward said: ‘This proves it’s not what you can do, it is who you are. It’s very nice for them to be able to just step into that.
Steve Bognar, Michelle Obama, Julie Reichart and Barrack Obama celebrate their Netflix hit
‘I imagine Prince Charles will be relieved as they will be off his payroll now, and the British public will be relieved because they can pay back what they owe now on Frogmore Cottage, so it’s a win-win situation.’
Obamas’ Netflix and thrill projects
This documentary, which won an Oscar, tells the story of a Chinese billionaire who opened a factory in a former General Motors plant and hired 2,000 people. It was billed as ‘early days of hope and optimism give way to setbacks as high-tech China clashes with working-class America’.
A series looking at women and people of colour in New York after World War II, described as looking at an era ‘marked by hurdles but also tremendous progress’.
Frederick Douglass: Prophet of Freedom
This documentary is based on the biography of the same name written by David W. Blight. Frederick was an escaped slave who became a prominent activist, author and public speaker.
This series will be based on a New York Times feature of the same name which tells the stories of people whose deaths have been unnoticed by the media.
A film exploring the origins and growth of the disability rights movement
Listen to Your Vegetables & Eat Your Parents
A series for pre-school children said to take them and their families ‘around the globe on an adventure that tells us the story of our food’.
They will be hoping to avoid the bad publicity given to Prince Edward’s production company after he founded it in 1993.
Ardent Productions had started well with a documentary on Edward VIII’s abdication but was later branded a ‘sad joke’ by some industry insiders.
Backers pumped £2.2million into the project but when it folded in June 2009 only £40.27 was left over.
Media analyst Rich Greenfield said: ‘The total deal could be hundreds of millions of dollars.’
The Sussexes decision to work with Netflix is also a move reminiscent of former President Barack Obama and his lawyer wife Michelle.
In January, sources confirmed the couple had discussed their plans with the Obamas and wanted to mimic the way they had managed to build a successful, but dignified, life for themselves after the White House.
Since leaving the White House, the Obamas have earned a small fortune by selling rights to their autobiographies and setting up their own production company, which has bagged a lucrative deal with Netflix.
A source said: ‘They have found huge commercial success without actually looking like they are getting their hands dirty, to put it bluntly, and retaining their popularity.
‘In fact it is fair to say that their star has soared since leaving the White House, particularly Michelle’s, and this is something Meghan admires very, very much.’
After stepping down as senior royals, Meghan and Harry signed with New York-based Harry Walker Agency in June, which represents the Obamas and the Clintons.
Meghan has made several appearances as a speaker at various online summits, however it is understood that she did not receive payment for these engagements.
Tom Harrington, a broadcast industry expert at Enders Analysis said ‘The Sussexes may imagine they will dictate the shows they want to make but Netflix will have a firm hand on the tiller.
A senior industry source said that Meghan would ‘believe she’s getting full creative control’ but that the executive producer’s credits she was likely to receive were ‘thrown around like confetti’.
‘TV networks, Netflix included, don’t let the lunatics run the asylum,’ the source said. ‘Meghan will no doubt want to cast herself as Mother Teresa but that’s not how it’s going to pan out.’