Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
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Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#2Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million.
And the claim that they're cash strapped after making 1.4 billion on barbie?
I just don't understand this at all. Does anyone?
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#3Writing off a business expenditure just reduces your tax liability. It is similar to putting money into R&D for a potential product and then not producing the product. Yeah you tried, paid consultants, paid for hardware, labor, etc.. but realized that it wouldn’t workout as planned or wouldn’t end up being profitable.
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#4Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million. And the claim that they're cash strapped after making 1.4 billion on barbie? I just don't understand this at all. Does anyone?
The only logic I can see is pretending to cancel the release, but then suddenly having a change of heart in the next fiscal year, when they are projecting to make a loss anyway.
Alternatively, the cynic in me also has a theory - that this is all a marketing ploy to drum up support for this underdog of a movie. But that seems fairly unlikely given that it depends on the CEO voluntarily acting the cartoon villain...
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#5Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million. And the claim that they're cash strapped after making 1.4 billion on barbie? I just don't understand this at all. Does anyone?
They'd also have to spend a lot on marketing. Usual estimates put the marketing costs at close to the same as production costs. They might make more money releasing the movie but would also make a larger loss.
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#6Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million. And the claim that they're cash strapped after making 1.4 billion on barbie? I just don't understand this at all. Does anyone?
You are making an assumption that this film would attract / retain more than 30 million worth of subscriptions.
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#7Writing off a business expenditure just reduces your tax liability. It is similar to putting money into R&D for a potential product and then not producing the product. Yeah you tried, paid consultants, paid for hardware, labor, etc.. but realized that it wouldn’t workout as planned or wouldn’t end up being profitable.
It's more like doing the R&D and producing the product, but then deciding not to sell it. In fact, it's literally that. You make it sound more reasonable than it should because you stops things at the research phase rather than after producing the entire movie.
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#8Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million. And the claim that they're cash strapped after making 1.4 billion on barbie? I just don't understand this at all. Does anyone?
Even if they only made 1 million on the movie, how would that not still be preferable? It makes no sense to me
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#9Writing off a business expenditure just reduces your tax liability. It is similar to putting money into R&D for a potential product and then not producing the product. Yeah you tried, paid consultants, paid for hardware, labor, etc.. but realized that it wouldn’t workout as planned or wouldn’t end up being profitable.
It's more like doing the R&D and producing the product, but then deciding not to sell it. In fact, it's literally that. You make it sound more reasonable than it should because you stops things at the research phase rather than after producing the entire movie.
I think it is good that someone has said that it is too poor quality to put out - refreshing even.
Re: Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off
#10Can someone explain how this makes any sense at all? They burned 70 million on making the movie and they'll recoup 30 million in tax write-offs, but if they released it, it's pretty certain to make way more than 30 million. And the claim that they're cash strapped after making 1.4 billion on barbie? I just don't understand this at all. Does anyone?
You are making an assumption that this film would attract / retain more than 30 million worth of subscriptions.
The vast majority of movies—let alone the ones worth watching—are not on streaming platforms, so I don't understand why you'd expect this to be the payoff route. Movies are still "sold" (i.e. leased) both directly to consumers and to streaming platforms—presumably for a studio that's still the way they make money.