The Montecito fairytale has reached its third act. It is the part where the gloss of high-budget production meets the cold reality of algorithm-driven metrics. For Prince Harry and Meghan Markle, the latest development feels less like a creative pivot and more like a social exile. The digital bond with Netflix, once a £75 million beacon of financial independence, is fraying under the weight of lackluster ratings and unsold inventory.

It is a messy divorce in the making. The streaming giant has officially divested from Meghan’s lifestyle brand.

The pivot from royal duty to Hollywood hustle was always going to be a tightrope walk. Yet the optics of the current moment are particularly sharp. Ted Sarandos, the Netflix co-CEO who once hosted the couple during their home renovations, has reportedly unfollowed both the Duchess and her brand, As Ever, on Instagram. This digital snub is the modern equivalent of a door being slammed in a gilded hallway. It signals a shift from personal friendship to cold, hard business.

The numbers are simply not adding up for the streamer.

The creative output from Archewell Productions has been a study in diminishing returns. While the initial documentary, Harry & Meghan, broke records with over 81 million hours viewed, the subsequent projects have failed to capture that lightning twice. The polo documentary was a quiet affair. Meghan’s lifestyle series, With Love, Meghan, faced a harsher fate. Its second season and a 2025 Christmas special failed to even crack the top 1,000 shows on the platform.

The most tangible sign of this cooling relationship is the mountain of unsold merchandise. Reports suggest that £10 million in As Ever inventory, ranging from jam to tea and candles, is currently sitting on shelves. Variety reported that Netflix has been giving this stock away to employees for free in their Hollywood offices. This is a far cry from the exclusive, high-end market the brand initially aimed to occupy. The jam has become a symbol of a strategy that leaned too heavily on celebrity and not enough on consumer demand.

Marketing departments are reportedly struggling with the Sussexes' bedside manner.

There are whispers from within the Netflix corridors about communication breakdowns. Sources claim Meghan would sometimes disappear from Zoom calls when she felt offended by the creative direction. Her legal team has countered this, citing the realities of being a working mother with young children. They suggest she was merely shielding her team from domestic distractions. However, the narrative of "ruffled feathers" persists among the rank and file of the streaming giant.

The staff turnover at Archewell remains a point of intense industry scrutiny. The couple has lost between 22 and 25 staff members since their move to the United States in 2020. This includes 11 publicists in just five years. Such a high rate of churn suggests a management style that is difficult to sustain. In Hollywood, where relationships are the primary currency, a reputation for being impossible to work with is more damaging than a bad review.

The market context for the Sussexes has shifted from curiosity to exhaustion. When they first landed in California, every major studio from Disney to Apple was vying for their signature. Now, the industry sees a pattern of repackaged royal grievances that no longer command the premium they once did. The "first-look" deal they currently hold is a significant downgrade from their original exclusive arrangement. It allows Netflix to pass on projects without the heavy financial burden of a massive retainer.

This is the reality of the attention economy.

The verdict on the Sussexes' Hollywood era is becoming clearer. They have struggled to produce scripted content, with projects like the animated series Pearl being scrapped early on. Their success has been almost entirely rooted in their proximity to the Royal Family. Without a fresh narrative that moves beyond their exit from London, their value as content creators will continue to taper. The punch in the gut from Netflix is a wake-up call that celebrity alone cannot sustain a media empire.

Frequently Asked Questions

Why did Netflix stop supporting Meghan Markle’s lifestyle brand?

Netflix chose to divest from the "As Ever" brand due to disappointing sales and a surplus of unsold inventory. The company reportedly had £10 million in unsold products like jam and tea sitting in warehouses. The streaming giant is shifting back to a more traditional first-look deal rather than being a retail partner.

Is Prince Harry and Meghan’s Netflix deal still active?

Yes, the deal is still active but has been downgraded to a "first-look" agreement. This means Netflix has the right of first refusal on any new projects the couple develops but is no longer paying the massive exclusive retainer they signed in 2020. Several scripted projects are still reportedly in development.

What happened to the show "With Love, Meghan"?

The lifestyle series "With Love, Meghan" was not renewed for a third season following poor ratings. The second season and a Christmas special in 2025 failed to rank in the top 1,000 shows on Netflix. The Duchess’s team has stated the brand may continue as seasonal specials rather than a full series.

Did Ted Sarandos really unfollow Meghan and Harry?

Reports indicate that Netflix co-CEO Ted Sarandos unfollowed both the Duchess and her brand account on Instagram. While Netflix spokespeople have denied any rift, the digital move has been interpreted by industry insiders as a sign of a cooling professional and personal relationship.

How many staff members have left Archewell since 2020?

It is estimated that Prince Harry and Meghan have lost between 22 and 25 staff members since their move to the US. This includes a notable turnover of 11 publicists. This high rate of staff churn has led to ongoing discussions about the couple's management style and internal communication.

Are there any new projects coming from the Sussexes?

Archewell Productions currently has two scripted features in development at Netflix. These include an adaptation of the novel "The Wedding Date" and a movie based on Carley Fortune’s "Meet Me at the Lake." A writer-director for the latter project is expected to be announced soon.