In short
The episode covers two linked stories: Prince Harry’s fallout with the charity he co-founded, Sentebale, and the renewal of Harry and Meghan’s Netflix deal, plus a brief defense of Meghan by Pamela Anderson.
Topic
A Charity Commission regulatory compliance case leaves Harry and Prince Seeiso frozen out of Sentebale after a March resignation by Harry, Seeiso, and other trustees following a falling out with chair Dr. Sophie Chandelka. The Commission found no evidence of systemic bullying/harassment, misogyny, or misogynoir, though it acknowledged a strong perception of ill treatment. Key claims include a “hostile takeover” framing by Harry’s side, and an action plan for governance/funding issues.
Guests
None. The episode is hosted by Jack Royston (Newsweek Chief Royal Correspondent).
Notable examples
Sentebale’s work for vulnerable children in Lesotho and Botswana (including HIV/AIDS and mental health); potential restructuring of the Lesotho arm; fundraising risk after Harry/Seeiso’s departure; Netflix shifting to a “first look” deal while As Ever product sales continue selling out.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOBackground on Centabale and the Dispute
0:18 to 3:00
Exploration of the charity Centabale, its founding, and the fallout involving its current leadership.
“as a hostile takeover in an organisation that he set up in Princess Diana's memory.”
Charity Commission's Findings
3:00 to 6:30
Discussion of the Charity Commission's investigation outcomes and the implications for Harry and the charity.
“But one major thing to consider before we get into the epic war of words between the two sides and how they all reacted and all of that kind of stuff is the question of what happens next.”
Harry's Response and Future Plans
6:30 to 10:00
Examination of Harry's emotional response to the situation and potential next steps he may take regarding charity work.
“But that is one thing that you cannot just gloss over, you know, you need the money.”
Funding and Governance Challenges
10:00 to 13:00
Analysis of the financial challenges faced by Centabale and the governance issues arising from the dispute.
“He says, of the current chair's actions will not be borne by her, but by the children who rely on Centipale's support.”
Trustees' Concerns and Closing Thoughts
13:00 to 14:00
Reactions from former trustees regarding the Charity Commission's handling of the situation and Harry's future involvement.
“And it's something that Princeso is exploring.”
The Challenges Facing Sentebale
14:00 to 19:21
Explore the potential challenges and changes at Sentebale following leadership issues.
“the foreseeable future or whether the funding will collapse and Centipale will, you know, disintegrate and whether Sophie Chandalka will effectively have to, I don't know what would happen.”
Harry's Resignation and Public Perception
19:28 to 26:03
Discuss Harry's resignation and how it impacts public sympathy and perception of him.
“Surely it was worth sticking around a bit longer and seeing if you could just thrash out some kind of an agreement.”
Meghan and Harry's Renewed Netflix Deal
26:05 to 28:00
Examine the implications of Meghan and Harry's new first look deal with Netflix.
“Megan and Harry have renewed their Netflix deal, but with a twist, which is that they are now on something called a first look deal.”
Harry and Meghan's Media Narrative Shift
28:00 to 29:14
Explore how recent media narratives have shifted regarding Harry and Meghan's deal.
“the moment when she proved those people wrong.”
Expectation Management in Deals
29:14 to 30:54
Understand the concept of expectation management in relation to Harry and Meghan's Netflix deal.
“look deal and it's nowhere near as good as the original one, then that absolutely does look like a humiliating downgrade.”
Show all 17 chapters
Assessing the Netflix Deal's Impact
30:54 to 33:43
Analyze the implications of the downgraded Netflix deal for Harry and Meghan.
“And I'm certainly not suggesting they did.”
As Ever Brand's Potential
33:43 to 36:06
Discuss the potential of Meghan's As Ever brand and its relationship with Netflix.
“Megan's second wine, a new Napa Valley Rose, is still online days after it first hit as ever online shop.”
Navigating Public Perception and Partnerships
36:06 to 38:28
Explore how Harry and Meghan navigate public perception and their partnership with Netflix.
“Like, is it a good outcome or a bad outcome?”
Statements and Insights from Netflix Executives
38:28 to 42:01
Review statements from Netflix executives regarding their partnership with Harry and Meghan.
“And what's really interesting, actually, is that no one was really having that conversation at the time about Meghan selling products, or very few people, maybe like a handful of small Twitter accounts.”
Evaluating Meghan's Brand Strategy
42:01 to 46:30
Discussion about the implications of Netflix's partnership with Meghan Markle and its impact on her brand.
“And I have to say that he got it absolutely bang on.”
Pamela Anderson's Support for Meghan
46:31 to 46:46
Pamela Anderson defends Meghan against plagiarism allegations regarding cooking shows.
“You will find all my latest Stories for Newsweek and when I'm back, Pamela Anderson defends Meghan against plagiarism allegations.”
Critique of Meghan's Cooking Show
46:47 to 50:34
Analysis of Meghan's cooking show and its reception, discussing its entertainment value and originality.
“People defending Meghan are actually a little more rare than they used to be.”
Transcript
Automatic transcript. May contain errors.0:01Prince Harry is devastated by a hostile takeover as Meghan and Harry sign a new Netflix deal and the celebrity who spoke out to defend Meghan. I'm Jack Royston, Newsweek's Chief Royal Correspondent, and this is Newsweek's Royal Report. Prince Harry is devastated after a charity watchdog cemented what he views as a hostile takeover in an organisation that he set up in Princess Diana's memory. Now, this is a complicated story. There's a load of background and there's a lot of public commentary from all of the people involved. So buckle up, because it is going to take a little while to explain all of this.
0:40But in a nutshell, Harry and the Princess of Lesotho created this charity, Senta Ballet, almost 20 years ago to honour the legacies of their mothers. So in Harry's case, obviously, that is Princess Diana. Her death, you know, absolutely came through him like a wrecking ball when he was 12 years old and left him with a lifetime of trauma. So Senta Barley was kind of seen at the time as the proof that Harry was going to make something of his life. Now, Harry and Princeso both resigned from Senta Barley along with several trustees in March. This was after a massive falling out with the chair of the charity, Dr.
1:16Sophie Chandelka. And it got very, very public and very, very messy. And the whole thing was being probed by an organisation called the Charity Commission, which is the watchdog, the relevant regulator of charities in England and Wales, and it launched something called a regulatory compliance case. So they have different kind of tiers of action that they can take. Harry was hoping that the commission was going to force Sophie Chandler out of the charity, and then that would pave the way for him and the other trustees to return. And then he could come back to Centre Barley, and it would be just like business as usual.
1:51But the regulator wrapped up this case last week and it took no such action. Instead, it gave both sides a wrap on the knuckles for the kind of the really damaging public nature of the dispute between them. And it gave Centre Barley an action plan that it's going to need to follow. And they're going to need to do that in order to fix government problems, governance problems rather, that the Charity Commission identified. But Sophie Chandalka remains the chair and the trustees that she appointed are still in post. So Harry therefore remains frozen out of his own charity. Now, it wasn't all bad news for him because he was effectively cleared of allegations of bullying and the commission also found no evidence of misogyny or misogynoir, which Chendelka had said she was a victim of.
2:35They did, though, acknowledge what they described as the strong perception of ill treatment felt by a number of parties to dispute and the impact this may have had on them personally. So not completely dismissive, but also they didn't kind of uphold or reinforce Chandelka's public statements about what she thought was going wrong at the time and how she thought she was mistreated. So that's basically the bare bones of this story. But one major thing to consider before we get into the epic war of words between the two sides and how they all reacted and all of that kind of stuff is the question of what happens next.
3:12And in a way, I think this is actually the most, in some ways, it's now become the most important part of it. So two major things to look out for. One, Harry has said he still wants to help children in southern Africa and to work with Prince Esso again. And Newsweek was told there is actually an outside chance and Prince Esso is investigating the possibility that they could find a way to wrench the Lesotho arm of Centipale away from Sophie Chandelka if it is a separate legal entity. Now, the charity has told Newsweek that that's not going to be possible, and it may well be that they're right, but that is one avenue that has actively been explored.
3:48Another option is creating a new charity, but we've been told it's far too early to say whether that's the path that they will go down. The Mail on Sunday actually ran a story about this and said there was a new charity in the offing, and Harry's team shot it down. I have a sneaking suspicion. I kind of have a bit of a concept of why, which I'll get into later. But for now, let's just assume for the moment that it's just one of many options, which is what they're saying. The other thing to look out for is whether Santa Barley can still fundraise without the princes on board. Now, obviously, it's one thing to be in control of the charity.
4:23But if the charity's got no money, then it can't carry out its function. And so this is going to be one big question mark is can she survive now that she doesn't have Prince Harry and Prince Sesso raising money for the organisation? and also after this incredibly public and reputationally damaging falling out between all of the different people involved. Now, in its regulatory action plan, the Charity Commission actually did say that it needs to set out the importance of the trustees, that's the current trustees, securing sufficient funding to enable the charity to deliver for its beneficiaries.
5:01So, you know, the Charity Commission is itself clearly aware of the risk here. that the funding for Centro Barlet collapses. And so it's quite interesting to think about what happens if that does. I mean, obviously, it will be devastating for the people that Centro Barlet helps, and it'll be devastating, you know, in some ways, probably for both sides. It'll be devastating for Sophie Chendalka, because it means that she'll have been kind of gifted this, you know, this opportunity by the charity commission to, you know, pursue the vision that she saw for Centro Barlet, in spite of the fact that the founders of the organisation, didn't want her to be the one to take it forward.
5:40But also, that might actually be why Harry is not rushing off to set up a new charity. If she can't continue to fund it, if she can't get funding, if she can't drum up donors for this organisation and Centa Barley kind of fails, it could be that it then becomes a kind of phoenix rising from the ashes and Harry and Prince Saso could at some point maybe rescue it if she's forced out because of funding problems. So that, I think, is probably the reason why nobody is jumping down the barrel of this whole thing about setting up a new charity right now. The proof ultimately is in the pudding and time will tell.
6:22And that is always the way of royal reporting. It's always what happens in the long term that matters more than what happens in the short term. And so we will see, you know, we'll see whether the funding is there. And it might be that it is, you know, she goes out and finds new donors, and they don't care about the fact that Harry's been kicked out the door, then she might well be fine, in which case she might continue as the chair of Centre Barlay for many years to come. But that is one thing that you cannot just gloss over, you know, you need the money. And if you don't have the money, than the whole thing, the pack of cards falls apart, basically.
6:54So, you know, more on all of these things in due course. But first of all, let's just talk a little bit about what all the various different sides to this are actually saying. So Charity Commission is probably the most important one to start with because it was their case. So, you know, they criticised both sides for the public nature of the dispute, but they said they found no evidence of widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity. So that is a bit of a blow to Sophie Chandalka because that is what she told Sky News had happened. She said that Harry had exposed her to harassment and bullying at scale.
7:34That was a reference to the moment that Harry decided to go public, basically. So the route to the whole thing blowing up in the public domain is a little complicated because Sophie Chandalka had actually sued Senta Barley at the High Court in London. So no doubt Harry will feel that he went public with a statement to the media in response to the lawsuit. But also technically speaking, he was the one who brought it into the actual public domain properly for the first time by releasing a statement to the media. So that public statement that he filed back in March, she described as harassment and bullying at scale.
8:08And earlier she had said, Beneath all the victim narrative and fiction that has been syndicated to press is the story of a woman who dared to blow the whistle about issues of poor governance, weak executive management, abuse of power, bullying, harassment, misogyny, misogynoir, and the cover-up that ensued. Now, obviously, the kind of allegations of poor management or mismanagement go both ways. She accuses them, they accuse her. But let's just get back to what the Charity Commission actually said. And so they acknowledged the strong perception of ill treatment felt by a number of the parties to dispute and the impacts this may have had on them personally.
8:42But they also said there was no evidence of overreach by either the chair, Sophie Chandelka, or the Duke of Sussex's patron. So, you know, there were some technical points that they raised. So, you know, lack of clarity about the delegation of roles and stuff like that. That's very important to the people who are directly involved, but perhaps less important to us as the public just kind of watching what's happening. but you know there were issues that they picked up on but then David Holdsworth the chief executive of the Charity Commission said passion for a cause is the bedrock of volunteering and charity delivering positive impact for millions of people here at home and abroad every day however in the rare cases when things go wrong it is often because that very passion has become a weakness rather than a strength.
9:24Centabale's problems played out in the public eye enabling a damaging dispute to harm the charity's reputation, risk overshadowing its many achievements and jeopardizing the charity's ability to deliver for the very beneficiaries it was created to serve. So that, in a nutshell, is what the Charity Commission said. Now, Prince Harry's initial statement was obviously strongly worded. He felt very strongly at the time. Kitchen and bathroom professionals know what goes behind the tile matters. That's why trade pros trust fiber cement hardy backer board to keep tile firmly in place resist cracking and help block moisture chosen in over 40 million kitchens and bathrooms hardy backer board what the best build on shop now at participating home depot lowes and floor and decor stores for more information visit jameshardy.com slash hardy backer and he started to basically take a little bit of a swipe at the Charity Commission, which is an interesting avenue to go down.
10:25He says,
10:51of the current chair's actions will not be borne by her, but by the children who rely on Centipale's support. So this is a bit where, you know, sometimes Harry's messaging is slightly unclear. And so, and I think this is one of those examples. It's not quite clear from exactly what he said, why he's taking a swipe at the Charity Commission. But essentially, my understanding is that he wanted them to remove her as the chair. And that would have paved the way for the founders and the original trustees to come back to the organisation and continue running it. And obviously Harry thinks they should have done that because he thinks that he has evidence or that there is evidence of Sophie Chendalka mismanaging the organisation.
11:32So that's what's really behind that line. He says, Centre Barley has been a deeply personal and transformative mission. This is from his statement, sorry, a statement on his behalf by his spokesperson, which is why it talks about him in the third person. But it says, The Centre by has been a deeply personal and transformative mission for Prince Harry, established to serve some of the most vulnerable children in Lesotho and Botswana. For 19 years, its dedicated staff and steadfast supporters have provided vital care to over 100 ,000 young people across Southern Africa, including young people living with HIV and AIDS and those facing mental health challenges.
12:07So, yeah, I mean, it ends by saying, you know, the Duke of Sussex and Prince Esau will now focus on finding new ways to continue supporting the children of Lesotho and Botswana. It's, you know, that public statement from a spokesperson was also, you know, it was a lot of the messaging there was even more emphatically repeated to Newsweek, you know, by a source. And clearly, Harry feels incredibly strongly about this and is heartbroken by the fact he's lost his charity, which he kind of views as his life's work. So, you know, someone I spoke to said Prince Cesar and Prince Harry are absolutely devastated by what Sophie has effectively done, which is a hostile takeover of this charity.
12:50It's a charity that Cesar and Harry set up 19 years ago, and certainly in Harry's adult lifetime, it's been his life's work. Now, I mentioned earlier this plan to potentially see if there's a way for Prince Cesar to wrest control of the organisation back off Sophie Chandouka. So I was told there are lots of complexities to the governance structures of Centobale, which means that we're not entirely clear as to, for example, whether or not Centobale in Lesotho is a separate organisation and charity to Centobale in the UK. And it's something that Princeso is exploring. The source added, if Princeso can find a way to extricate Centobale in Lesotho from Sophie Chandelke, he would do it in a heartbeat.
13:32If that were the case, then I think there is a world in which Prince Harry would love to work with Prince Seiso again in effectively continuing the good work the pair have done for nearly the last two decades. So like I said, Centipale told us that it's not going to be possible for them to do that, which does raise the question, what does Harry do next? Does he just sit back? I think what he's doing now is probably going to be just sit back and watch and see what happens, see whether Centipale can find new sources of funding, whether it's going to be a going concern in the foreseeable future or whether the funding will collapse and Centipale will, you know, disintegrate and whether Sophie Chandalka will effectively have to, I don't know what would happen.
14:13I mean, would she go down with the ship or would she get forced out under those circumstances? I guess only time would tell if it does indeed go that way. I mean, the other possibility is that she does just find other donors than the ones who are allies of Harry. A lot of the funding for Sintipale was raised through Harry's efforts at Polo. He would throw these charity Polo fundraising events where all of these rich Polo community would give money to the charity. So it got a lot of money that way. So those sources of funding absolutely 100 % will have fallen away. So it's just whether she can find other donors.
14:44It's not impossible she will, but we will see. Time will tell. Now, we also got a statement from the former trustees of Centipale who said, we are disheartened by the way in which the Charity Commission has chosen to ignore key concerns and irrefutable evidence raised with them regarding the leadership and oversight of Centipale's chair. We accept that there is always room to strengthen governance of an organisation, which is why we welcomed a governance review by the chair initiated in February 2024. And that should have only taken a matter of months. We unfortunately never saw a report or any outcomes enacted more than two years into her tenure.
15:18So a kind of double whammy from the former trustee. So on the one hand, they too are taking a swipe at the charity commission. A source on the Sussex side also told Newsweek that it showed itself to be a kind of toothless tiger by not taking action against Sophie Chandelka. So it's a kind of dual two-pronged attack. They're kind of saying the charity commission did a bad job, but they're also saying Sophie Jandalka is not up to the job of being chair of the organisation. But it was also said to me, you know, that if there is a chair who is not up to the job, it's virtually impossible to get rid of them, which I think is why Harry resigned.
15:58But I want to unpack that a little bit more later. Right. So there's another like total side mission from this whole story, as if we weren't already dealing with enough. It's already incredibly complicated, but this little side mission popped up, which was that the Mail on Sunday did this story, which was kind of innocent enough in its way. But they ran this piece saying that Harry was going to set up a new charity so that he could continue working to help the children of Southern Africa, of Lesotho and Botswana, outside of Sintabale. And it earned a bit of a clap back from Harry's team who said no decision has been made.
16:35They said that quite emphatically. and that it's wrong to characterize this as a path that has been chosen. It is one of a number of options that are available, not any kind of foregone conclusion. So that is mainly interesting to me as an example of like, why go public with that kind of dispute? I mean, on the one hand, it goes back to that thing that, you know, it's just not probably not right. It's not correct that a decision has been taken. So, you know, obviously Harry is completely within his rights to say so. And to say, you know, that's not accurate, don't follow it up to the rest of the media.
17:13And I think actually the Mail ran another story giving the Sussex line. So in some ways, as disputes go between Harry and the Mail, it's actually one of probably the more amicable public disputes between those two. But he, you know, Harry hates the Mail. He sued him and Meghan more times than any other newspaper. You know, between them, they've racked up four lawsuits against the Mail and Mail on Sunday. predominantly the mail on Sunday actually but it's also just interesting that it was only last week that Harry sent a legal letter to the Daily Mail over the serialisation of Andrew Loney's book now more on Andrew Loney's book next week I hope to have him on the show we'll see if that materialises but I do think he's coming on but effectively it's a sign that things are flaring up again with Harry and it's really interesting because it's happening at a time when relations are actually I think improving between Harry and a lot of news organisations, actually including some of those news organisations that Harry has been at war with in the past.
18:14But the mail continue, even in this kind of new dawn of the Sussexes reaching out a little bit more to the media. The mail is still basically at loggerheads with Harry. And obviously Harry does still have one more lawsuit. His last lawsuit that's still up and running, that's still waiting to be resolved, is against the mayor. So it's just more evidence that probably, I guess, he's not going to want to settle that out of court if he's still upset and angry with them. But only time will tell. We'll see where that one goes, and it will be months before it comes to trial at the High Court in London.
18:51So I will keep an eye on it. But going back to the kind of main thrust of this story. Kitchen and bathroom professionals know what goes behind the tile matters. That's why trade pros trust fiber cement Hardy Backerboard to keep tile firmly in place, resist cracking, and help block moisture. Chosen in over 40 million kitchens and bathrooms, Hardy Backerboard, what the best build on. Shop now at participating Home Depot, Lowe's, and Floor & Decor stores. For more information, visit jameshardy.com slash hardybacker. one thing that just really interests me is i still don't believe that we have enough in the public domain currently to fully understand what really happened here one of the questions living over it is just like i suppose the first question is was henry right to resign from center bali in the first place and so i guess it goes back to that point about what would he have done if he'd stayed on like it kind of feels a little bit like why did you resign?
19:52Like you've lost this charity. Surely it was worth sticking around a bit longer and seeing if you could just thrash out some kind of an agreement. But then, you know, there's another part of me which is like, well, I guess things went very, very toxic at the palace and maybe they, you know, they all stuck around too long there. And maybe actually, in some ways, maybe Harry did it better this time where he saw the writing on the wall that everything had gone toxic and just bailed. And then, yeah, I mean, once you're out, you're out. You don't really have a, once you're out of the organization, you don't have any foot in the door to try to kind of get the chair to go and you to stay.
20:30So I'm sure that, you know, numerous times he has absolutely kicked himself that he walked away from it. I would be amazed if he didn't, but I think ultimately he will still come out in the position that it was his only course of action because it had got very, very toxic and staying in a toxic situation is not necessarily the right thing to do. it's kind of why I actually never opposed Harry and Meghan quitting the royal family like I you know I don't necessarily think that was the wrong thing to do I think that throwing hand grenades at the royals again and again and again and particularly the way that it was done may well have been the wrong thing to do because you know ultimately they lost the public sport because it seemed like they were just hammering the same nail over and over again you know and that wasn't helpful but actually like walking away from a toxic situation is not an unhealthy thing to do it's actually a healthy thing to do.
21:19So it is kind of, I can see why it's heartbreaking for Harry. It kind of is heartbreaking, to be honest, but maybe actually he did it better this time by just getting out early. And yeah, you know, that's how we wound up frozen out. But it's also really weird to me how suddenly it blew up. Like if you, if you look back, even like a few months, last year, Harry visited and he visited Lesotho. He met Sophie Chendauka. they looked in their photos like they were getting on great. There's even a picture of Harry with his arm around her. They're posing for pictures together. There's absolutely no hint in any of that photography that there's any problem between them.
21:57I think the last time I talked about all this on this podcast, I mentioned that there was a press release in which Harry appeared to kind of emphatically support Sophie's vision for redesigning the charity because basically Sophie Jindalka's whole thing was that she felt the charity should be based in Southern Africa, alongside the people it helps. She felt that dealing with HIV and AIDS was perhaps yesterday's problem and that it needed to deal with other issues, particularly she mentioned climate resilience. Well, you know, as recently as last autumn, when Harry visited Lesotho, he visited a climate resilience project.
22:35So it really felt like, you know, she had a vision that was different to his and he was joining her, like walking down that path. And then all of a sudden it absolutely went nuclear. And that change happened in months. And I still don't really feel like I understand how it changed so hard so fast, especially because we do have an account of people quitting and leaving and resigning longer ago than that. And, you know, you look at the statement from the trustees and they talk about her, you know, wanting to change things as early as February 2024. so I guess Harry maybe wanted to believe or something but yeah I mean I think I still have a bunch of questions on this which I don't really feel like I know the answers to one final point though is how all of this will be perceived in the long term and honestly I think there will be actually probably quite a bit of sympathy for Harry mainly because everyone even like the toughest souls do for the most part ultimately respect Harry's grief and the pain that he experienced when Diana died Even the hardcore trolls who hate Harry and Meghan and jump on everything they do, do generally have some respect for his grief for the loss of his mother.
23:50And this charity was set up in her memory. So, you know, you just step back from it all. It's like sometimes you just have to bring common sense to a situation and you step back from it all. Like, why shouldn't a guy who has the money, why does he not have the right to run a charity in memory of his dead mother? as long as he's doing good and he's raising the money and that money is being spent wisely. These things do matter. It's not like anyone can do anything. Charity is kind of a solemn promise that must not be abused or exploited or violated. But needless to say, he does have the right to set up a charity in his mother's memory and to run that charity.
24:31So I do think that there will be a lot of sympathy for Harry on that point. and you know even in Britain where he's obviously very unpopular I think people like have huge respect for the fact he lost his mother and you know they actually you know for the most part people did like Zentibale like that was never the issue that they had with Harry even people who have a massive massive issue with them with him sorry and with Meghan never had a problem with Zentibale or his work helping kids in Africa and to whatever extent Sophie Chandelka might think that focusing on HIV and AIDS is not the most currently pressing thing when climate change is going to cause mayhem.
25:13Trump has obviously made huge cuts to USAID. There may well be absolutely right that there are other fish they could be frying, but I don't think anybody in Britain actually has a concrete sense of the idea that Santa Bali was in any way not doing good or wasting its money. I think people in Britain believed in the charity and in that respect I think they will have a huge amount of sympathy for Harry and the fact that he has lost this organisation that meant so, so, so much to him. But on that note, I'm going to take a quick break. But before I do, remember to rate and review The Royal Report on Apple Podcasts or Spotify or wherever you get your favourite shows.
25:53And when I'm back, Meghan and Harry's Netflix deal has been renewed after all.
26:03Hello, and welcome back to the show. Megan and Harry have renewed their Netflix deal, but with a twist, which is that they are now on something called a first look deal. If you are a regular listener, this will be no surprise to you because this is exactly what I discussed previously. And in fact, it is exactly what the UK brand and culture expert Nick Eade told me would likely happen. So you can read that past story on Newsweek, but I'll go through some of his comments here anyway. Now, a first look deal means in essence that Netflix gets first refusal on any projects Harry and Meghan want to pitch, but if they don't like anything, the Sussexes can take it elsewhere.
Read the full transcript
26:43So the partnership continues, basically, is the key thing. Netflix are not bound into them paying the mega seven-figure annual sums for lukewarm content based on the original deal which you know they were getting supposedly several million dollars a year plus you know performance fees on top of that no doubt when they had hits so this is also you know it's a win for Netflix because they bring down their costs we understand they may be paying like some kind of office overheads and things like that but they're not paying out massive sums each year but it's also a win for the Sussexes in PR terms because they didn't get canned now there are all sorts of layers to this and it is such a fascinating lesson in PR and expectation management which is also something I talk about quite a bit on this show.
27:31But let's just do a quick rundown. So Meghan and Harry signed their mega deal in September 2020. It was for five years and it was major for them at the time because that was the first moment when we really had a concrete sense that they would be okay financially after quitting the palace. You see back in January of that year when they announced their exit they had said they would work to become financially independent. And a lot of people scoffed and said it would never happen and that Meghan was a Z-list actress and she'd never be able to make any money in the private sector in America. And Netflix was the moment when she proved those people wrong.
28:04But in July, The Sun in Britain and people in America both reported the deal was going to be axed. And now it hasn't been. So for the first time in a long time, like a really long time, I can't remember when, Harry and Meghan actually got one over on the media because most of the kind of the narrative over the past few years since spare has been about the media kind of being proved right a little bit and Harry and Meghan kind of disintegrating a little bit and America recalibrating its perspective on them. So this is kind of turning the tide a little bit back the other way. But, but, but I hear you say, others are saying it's not a win for the Sussexes.
28:42And yes, it's true. Some outlets are reporting this from the perspective that Harry and Meghan's original deal has been massively downgraded, meaning basically it's a defeat for the Sussexes. So who is right? Well, to answer that question, you need to understand the concept of expectation management. And I promise I will get onto the actual details of the contract renewal shortly. But this is actually, I think, the most interesting thing about it, because it's also where Harry and Meghan have gone so wrong so many times before. Now, if you go out and tell everyone the Netflix deal is going to be renewed, it's going to be mega, it's going to be proof that Harry and Meghan are interstellar, A-list TV producers, and then it appears and it turns out it's just a first look deal and it's nowhere near as good as the original one, then that absolutely does look like a humiliating downgrade.
29:35But that's not what happened. What happened was that two major media outlets on both sides of the pond reported that the deal would not, in fact, be renewed. One of them said it was because Netflix were fed up with Megan putting all of her time into her online shop, as ever. And loads of other outlets picked up those stories, which means, you know, it went around the world and they were reported everywhere. So who knows who the source was for those stories? It kind of doesn't even really matter. The point is that the public had already been coached to expect a full and definitive end to the partnership.
30:08And that's not what they got. What they got was, in fact, a continuation of the partnership for years to come. A new as-ever holiday special in December, for example, and a whole new documentary about an orphanage that we've never heard about this project before. Not to mention that the two sides are apparently still saying that the adaptation of Carly Fortran's romance novel Meet Me at the Lake is apparently still in the pipeline. Now, this has been kicking around for ages. It has been officially announced in the past, but nothing has materialised, no casting news, nothing. So, you know, I had kind of was preparing myself for it to just fizzle out and never happened.
30:47They're apparently still saying it's going to happen. So, no doubt the Sussexes had absolutely nothing to do with those stories. you know, in the Sun and People magazine. And I'm certainly not suggesting they did. But the article saying that the deal was going to be effectively completely scrapped actually played out really well for Harry and Meghan. You know, it brings it all back to this point, which is, you know, what kind of an outcome is this for them? Like forgetting whether this is better or worse than the original deal. Let's just look at the whole picture and ask, Are they the winners or the losers from this deal?
31:24So the inaccurate articles makes a deal downgrade look better because the public were given the expectation that something worse would happen. But what is the deal like? Is it good or is it bad for them? Well, that's partly a matter of opinion, in which case, by all means, think whatever you like. I'm here to give analysis, not to tell people what to think. So make your own minds up. I don't mind. but this is my take. So Harry and Meghan are not interstellar TV producers and they likely never will be and in a way that's fine. They're not obliged to be, like they don't owe anybody morally, you know, incredible TV shows.
32:05Like it's something they tried, it didn't work out. Like we'd have these moments in our lives and it's, you know, it's the right thing for them to acknowledge and accept the inevitability of the fact the Netflix deal had to be downgraded. It's one of those things where you just have to read the writing on the wall early. Like if they had pushed really hard and got a deal that wasn't worth the money, then they're just going to wind up tanking with Netflix. And, you know, there was simply no way that it was ever going to make financial sense for Netflix to continue paying them millions a year, like they did in the first five years, for what we know is going to be vanilla lukewarm content.
32:45But the fact that they've accepted that means that the transition is smooth. You know, they've allowed that process to happen. They've protected their reputations in the process, but also they're protecting the thing that still has a chance of actually making money. And that's as ever. So this is the other major benefit of keeping some remnants of the Netflix deal alive for both sides, which is that Netflix is an equity partner in as ever, which means they have bought a share in the business, effectively sinking money into it in order to allow it to scale up so that supply can meet greater demand in time.
33:22And Netflix will, A, they'll want a return on that investment. They'll want to recover the money they've already put into it. And it is way too early for them to have made any judgment at all about whether AsEver will be a long-term success or failure. In fact, it was only just in the past week that AsEver first launched a product that didn't sell out immediately. Megan's second wine, a new Napa Valley Rose, is still online days after it first hit as ever online shop. So, you know, that really makes this the first moment, in fact, where it's actually possible to fully test how much demand there actually is for as ever products.
34:02Because if everything sells out in five minutes, you never get to test what the scale of the actual demand is because the supply in previous product launches was falling so far short of demand that it's just not possible to tell what the earning capacity of the business really is because everything's just gone instantly. So why would you not stick around to see how that goes? Of course, it makes sense for them to do so. And it could turn in. it's still possible that As Ever could turn into a mega payday for both Meghan and Netflix. So the new deal really is a great outcome for Meghan as long as she can make a success of As Ever.
34:42So transitioning out of producing all of these middle-of-the-road forgettable TV shows that people make fun of will be good for her mental health. We're good for her reputation to transition out of that stuff because it's getting panned. Like With Love Megan got panned so hard by reviewers and it's, you know, not having that experience again, I think will be good for Megan, quite honestly. It will massively reduce the pressure on her to be this scintillating, like adored personality, because that was part of the problem of With Love Megan is that it was so, so much of it was tied to the idea that she was going to be this really inspirational lifestyle guru.
35:22who's going to set trends and all of this stuff. And with As Ever, she doesn't actually really need to be. She just needs to shift products. You can do that with business partnerships as well. You can do that by signing a deal with a hotel chain for them to offer your wine in all its restaurants and stuff like that. You don't need to be this icon of popular culture in order to make a shop, an online shop, successful. So transitioning out of that where so much pressure was on her shoulders is going to be good for her mental health. it's going to be good for her reputation too. And it is in fact a rare example of the Sussexes just seeing the writing on the wall and taking the correct path with no fuss and no drama and simply pivoting to a better option.
36:05And this is, I think, the best way to look at this question. Like, is it a good outcome or a bad outcome? I think the best way to look at it is like step into the metaverse and consider a hypothetical alternative reality. And let's say Netflix told Harry and Meghan They wanted to downgrade the deal and Harry and Meghan had got all defensive about it because they can be really defensive about things sometimes and very easily wounded. And let's say they'd started, you know, they'd felt really like broken by this experience and started releasing public statements, taking a swipe at Netflix. Like you might remember there was a point when they took their disagreements with Spotify public and started taking a swipe at Spotify for having a partnership with Joe Rogan and it all got very public and toxic.
36:51And they haven't done that. You know, that has not happened. So this way, Megan still knows where to plough most of her resources, i.e. scale up supply for as ever so it can make as many products as possible and make it, therefore, as much money as possible. In the process, she swerves any perception that there's bad blood between the two sides, and actually she is giving Netflix something more valuable than many people are willing to acknowledge. Because as I've said before on this podcast, Ted Sandorff, the Netflix co-CEO, loves Megan and has gushed about how great Megan is in the past. But the reason has nothing to do with the quality of the TV shows they were producing.
37:29What he's interested in is her ability to sell physical products. So people with an overly rigid view of what Netflix is will look at the way the TV side of things is clearly going and has gone and the fact that it's being scaled down and call that a major defeat for Harry and Meghan. But that's why those people aren't the co-CEO of Netflix. And Ted Sarandos can see the possibility of Netflix generating a whole revenue stream out of a completely different aspect of the business, which is basically merch connected to people's favourite TV shows. And so he wants to watch the progress of as ever from afar without having to do much of the actual legwork and learn the lessons before no doubt rolling those lessons out across the whole of the company.
38:16And he doesn't actually even need, in my view, as ever to be a success in order for him to do that, because you can learn from failure just as much as you learn from success. In fact, sometimes failure gives you the best and most enduring lessons. but that is it's a valuable project for Netflix and you can tell from his own comments on the subject in a way like it's actually kind of impressive I think that Ted Sarandos was able to see that at the early stage that he saw it because he talks about it in relation to Harry and Meghan's first show the Netflix biopic that came out in December 2022 and that that one was about you know it was their royal exit and it's one where Meghan did the fake bow it was like the first big show with the royal bombshells.
38:58And what's really interesting, actually, is that no one was really having that conversation at the time about Meghan selling products, or very few people, maybe like a handful of small Twitter accounts. But even fans of Meghan were mainly talking about how terrible the media and the paparazzi were, or they were talking about how terrible the royals were. Detractors were talking about the fake curtsy, or the fact the show took took a swipe at the Commonwealth and called it Empire 2.0. TV critics were calling it an unsatisfying rerun of the Oprah interview with no new dramatic details. And some people were pointing also to it actually being a massive rating success, because obviously it was watched by a gargantuan number of people, despite causing some reputational injury to Harry and Meghan.
39:45Ted Sarandos saw through all of that, like so much noise. He saw through all of that on both sides, despite the fact that that show was the one that was a ratings hit. And he saw through all of that to the fact that Megan had been selling out a few consumer goods. And to him, that pointed to a whole new revenue stream for Netflix. And I would never have thought of that myself. and whether it has ever succeeds or fails, he might well have been right to see this. He might well have seen the diamond in the rough. I presume it was him who saw it. It might have been somebody else, but he's the one who's talked about it publicly.
40:25I've been talking for a long time now without actually reading through what any of the sides have been saying. I'm going to pause for a moment to do that and just get you up to speed. I'm going to start with what Megan's been saying about it. So this was her statement. She released this through the press release. She says, we're proud to extend our partnership with Netflix and expand our work together, including the As Ever brand. My husband and I feel inspired by our partners who work closely with us and our Archwell Productions team to create thoughtful content across genres that resonates globally and celebrates our shared vision.
41:02so the press release also went out with a quote from bella bajaria netflix's chief content officer and she said in her statement harry and megan are influential voices whose stories resonate with audiences everywhere the response to their work speaks for itself harry and megan gave viewers an intimate look into their lives and quickly became one of our most watched documentary series more recently fans have been inspired by with love megan with products from the new as ever line consistently selling out in record time. We're excited to continue our partnership with Archwell Productions and to entertain our members together.
41:40So, you know, quite glowing there from Bella Bajaria, who has actually spoken publicly in support of Megan before. So, you know, I think Megan realistically has two supporters at Netflix, at least, Bella Bajaria and Ted Sarandos. But also Nick Eade, I mentioned earlier, so he is the one who put this concept of a first look deal onto my radar. And I have to say that he got it absolutely bang on. And he said, I did for what it's worth. I did have an inkling that it was not going to be a hard, clean break. As others have reported, I kind of knew it was not likely to be that. But Nick Ede was the person who put this idea onto my radar that it could be a first look deal.
42:26So this is what we quoted him as saying back in July. They would probably keep the stake in the brand because they've actually developed that brand with her. And it's important to keep that relationship, they being Netflix. I don't think they would want to cut their noses off to spite their faces. But if they don't renew their TV shows, they will just be getting revenue stream from her shop. They've invested a lot into that. So they will want to see a return, a massive return. My gut feeling is they will do a first look deal with her. They will look at the numbers for the new season and see if that does relate to sales, because that's what this is really about.
43:01People aren't going to subscribe to Netflix to watch the next Megan show. So that's done for them from that point of view. So, you know, Nick very much also seeing it from the same perspective that the TV end of things is winding down. That is true, but it doesn't mean that there isn't still potential in the online shop. So the point Nick's making here really is that the TV show is an advert. It's there to advertise the online store. But it's quite an interesting point he makes that Netflix might be looking at whether the show does drive sales or not when they make a decision about whether to commission season three.
43:38And one reason why that's an interesting point is because we're about to get season two, but season two was filmed at the same time as season one, which was all before Megan started offering wine. so it's probably realistically may well not actually contain an opportunity for megan we'll have to see when it comes out i might be wrong but there's every chance it won't contain an opportunity for megan to plug the wine aspect of as ever which seems to actually be the best bit of it like that's the bit that's not sold out i would assume we will get another batch of product in uh you know when we're expecting season two to come later this month so when that happens i'm sure at some point close to the broadcast date we must presumably get another batch of her kind of food products, her jams and the flower sprinkles and all of that kind of stuff.
44:26But I think, you know, she will want in that Christmas special, or festival, whether they're calling it holiday special, I'm sure, to plug the wine really hard. And then the other thing I wanted to do was just actually read some of these quotes from Ted Sarandos. I've read them before on the show, but just as a reminder. So this is what he's told Variety in March. I think Meghan is underestimated in terms of her influence on culture. When we dropped the trailer for the Harry and Meghan Docs series, that's, we're talking December 2022, but that, everything on screen was dissected in the press for days.
44:56The shoes she was wearing sold out all over the world. The Hermes blanket that was on the chair behind her sold out everywhere in the world. People are fascinated with Meghan Markle. She and Harry are overly dismissed. And he added, we're a passive partner in Meghan's company and it's a big discovery model for us right now. So discovery model meaning they want to learn the lessons from it to see how they're going to do things similar elsewhere within the company. So, you know, all in all, I think this is a great outcome for Meghan and Harry, not only because of what they've been offered by Netflix, but also crucially because they have gone through this transition while maintaining like PR discipline, message discipline.
45:40and they've not got fed up or angry and started sounding off publicly, taking swipes at people. But they've just accepted the nature of reality, which is that they have not proven themselves to be A-list TV producers. Neither of them are Shonda Rhimes. So in that respect, it's just a huge win. In that respect, it's just a huge win in terms of their own ability to exercise restraint and to not blow up their own lives, which they have done many times in the past. So in some ways, that's the biggest win of all. I mean, forget Netflix renewing the deal. The biggest win here is that Harry and Meghan managed to guide themselves through this process without blowing up publicly and taking a pot shot at everybody else left, right and centre.
46:27And on that note, I'm going to take one more quick break. But before I do, a reminder to follow me on X, formerly Twitter. I'm at Jack underscore Royston. You will find all my latest Stories for Newsweek and when I'm back, Pamela Anderson defends Meghan against plagiarism allegations.
46:47Welcome back to the show. Now, I'm in the current climate. People defending Meghan are actually a little more rare than they used to be. Once upon a time, celebrities would queue up to defend the Duchess of Sussex, but not so much nowadays. I should say, actually, this is a very Meghan and Harry heavy show today, which is largely because it's August, which means the royals are all on holiday. But needless to say, here we are. So Pamela Anderson was asked by Andy Cohen on Watch What Happens Live, what do you think of all these stories in the media saying that Meghan ripped off your idea for the cooking show because Pamela Anderson has her show, Pamela's Cooking With Love, and she's obviously been doing a lot of media rounds alongside Liam Neeson for Naked Gun.
47:30And so this is what she had to say. Andy Cohen asked her, on a scale from one to ten, how much of a rip-off did you feel, With Love, Megan, was of your show, Pamela's Cooking, With Love? He says there were articles saying that these two shows were very similar. Anderson replied, one, I didn't. So Andy Cohen seemed slightly surprised with that. And he said, one, on a scale from one to ten, you did not see any similarities. And actually, Anderson said, no, I didn't really look, but I mean, I didn't invent cooking shows, she's just doing her thing. So clearly it doesn't sound like Pamela Anderson has actually watched the show, but I think she's making a slightly different point, which is that who even really cares?
48:09This is the thing. This is kind of my, I kind of agree with Pamela really, which is that the cooking show was simply never going to set the world on fire because it's a cooking show. And in a way, it kind of doesn't really matter that much whether it was derivative or not. It was just really matters whether it was entertaining or not. And if it had been really, really entertaining, it wouldn't really have mattered whether it was a little bit of a copy. The problem with it was that it was just, it was kind of boring and a little bit weird in places. And that matters in reality much, much more than whether Megan stole the idea.
48:44and for what it's worth, people do actually kind of pinch ideas from each other all the time. In fact, actually, you know, in some ways, no TV show ever made is really, truly, completely, completely new. Almost everything is a combination of ideas that already exist in the public domain. And part of the reason for that is it's much easier to get something like that made if you can tell people it's a bit like this. So, you know, in the world of literary fiction, for example, the writers are actively encouraged to go when they pitch to agents and say, my book is like a combination of this book and this book, because it's reassuring to those agents to see that there's a kind of successful blueprint, because it all goes back to the immortal words of the Hollywood script writer William Goldman, who famously said that nobody knows anything.
49:35And that really is the ultimate truth. No one knows anything. And so if your show is a little bit derivative, it's kind of reassuring to people because it shows them, well, this show was a success. So if this show is like that, but also different in another respect, then maybe this show will be successful too. So the derivative elements of the show are not the issue. The issue is just that it was a bit boring and certain things didn't work very well because, for example, it wasn't in her real house. And that is half the intrigue is seeing Megan's lifestyle. It was a lifestyle show. And then also just the fact that she compromised too much.
50:11You know, like she does a kid's party and you don't see the kids. All of these kind of things are just a bit weird. And she was not able for some reason to fully come out of her shell. So she was just a bit too kind of like you could see how anxious she was in certain bits to just make sure everything went well. And that kind of takes the edge off the enjoyment. And that is it for this episode of The Royal Report. Be sure to join me every week when I visit the latest royal headlines, embark on some royal deep dives and riff on all things royal. Until next time, I'm Jack Royston. Thanks for listening, everyone, and a curtsy to you all.
From the publisher
Prince Harry is devastated by a hostile takeover, Meghan and Harry sign a new Netflix deal, and a celebrity speaks out to defend Meghan.
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