Hollywood is said to be glad at Prince Harry's decision to attend the King's Coronation in May amid fears that the Sussexes' celebrity status is starting to wane.
Insiders claim that the Duke and Duchess of Sussex's brand relies on Harry being seen as an active member of the Royal Family.
This week, it was confirmed that Harry will attend his father's coronation at Westminster Abbey on May 6, but Meghan Markle will remain in California with her two children to celebrate Archie's fourth birthday at their mansion.
The Duke of Sussex is expected to only attend the Coronation ceremony in the morning before heading back home, but according to reports, a place has been saved for him for lunch in case he decides to attend it as well.
The Mail on Sunday reports that Harry's decision was "a palpable sigh of relief" in Hollywood with an insider claiming that the couple's celebrity status is wilting.
A Netflix source said: "Harry is going back for all the right reasons but there was a palpable sigh of relief among those of us involved in the business because Brand Sussex relies on Harry being seen with his family.
"At the end of the day it is all about proximity to the King."
It comes amid speculation in Hollywood about the Sussexes' next steps with a senior executive at Walt Disney Studios saying the couple are "at a turning point" following their Netflix series and Harry's memoir Spare.
The insider said: "You could argue the bloom is starting to fade from the rose. What is their currency? Their main selling point is their link to the Royal Family.
"Harry has to be there [at the Coronation]. In America, this is all part of the narrative. Harry has to go back and he's either embraced, which is wonderful, or he's not – which will keep the narrative going.
"The story has to keep evolving because that is what builds the brand and brings the offers in."
The source added that the American public needs to still see Harry as party of the Royal Family as they are interested in their "drama".
Meanwhile, Meghan's decision to skip the Coronation was described by a commentator as a "brilliant" way for the Sussexes to divide familial and royal responsibilities.
Royal watcher Kristen Meinzer said it makes sense for one parent to celebrate Archie's birthday while the other fulfills his royal obligation.
She said: "I think the decision for Harry to go, and for Meghan to stay home with the children on Archie's birthday is a brilliant way to split the difference.
"As I've said in the past, the primary benefit of attending is the optics; of looking as though they're continuing to do their best on their end — even if the royal family isn't always doing their best on their end.
"But I've always maintained that the Sussexes must also do what's best for their own little family and their own mental health. It sounds like that's what they'll be doing."
