The Duke and Duchess of Sussex recently signed an unprecedented multi-year deal with the streaming giant that will undoubtedly net them millions.
They plan to produce a wide range of content from family programming to documentaries.
But there are reportedly concerns among the famously private royals that Harry and Meghan might use Windsor family history or their own experiences for storytelling purposes.
"We are also getting some information on how the royal family actually feels about all of this," host Christina Garabaldi said in this week's episode of Us Weekly's "Royally Us" podcast.
"So we got reporting that, you know, maybe the Royal Family is a little bit uncomfortable about this in case they do something that would spill some Royal Family secrets.
"But they are happy for them, but this probably just wasn't the venture that they thought that they were gonna go in."
There have already been reports that the family are "deeply uncomfortable" about Princess Diana's struggle with bulimia being depicted in Netflix series The Crown.
Netflix also heavily promoted its Jeffrey Epstein: Filthy Rich documentary series which cast an unflattering light on Prince Andrew.
If Harry and Meghan choose to produce films or TV shows depicting other facets of behind-the-scenes royal life, it could drive yet another wedge between them and the Palace.
Garabaldi went on to discuss recent reports that Netflix was a back-up plan for the couple.
"There's also been some reports that this was kind of Plan B for them because they were really kind of banking on Sussex Royal," she said.
"Right, I mean I guess it's not a bad Plan B to get 100 million dollars to take over Netflix," co-host Molly Mulshine said.
Garabaldi added that the streaming deal, which has made headlines around the world, seems counterintuitive to the couple's desire for private lives which saw them leave the Royal Family earlier this year.
"What's interesting to me is that it seems like they're not going to get the privacy that they wanted, that they so longed for," she said.