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creator and host of the podcast I've Been Meaning to Watch That / tiktoker / youtuber / ATL baddie
Under David Zaslav’s leadership, the company has adopted a strategy of shelving completed films for tax write-offs, despite the films’ potential profitability. They have done this with Adil El Arbi, Bilall Fallah, and Christina Hodson’s Batgirl and more recently with Dave Green and Samy Burch’s Coyote vs Acme. They initially decided to cancel this Looney Tunes live-action/animated hybrid film as a need to close their financial books. These decisions to shelve these films appear to be part of Warner Brothers Discovery’s financial strategy before their Q4 earnings call on February 23rd.
Reversal and Deadline Pressure
The cancellation of both films sparked outrage as many people were hoping to see a Batgirl-centric movie in theaters or on streaming. Although there were reports that Batgirl had mixed reactions from private screenings, DC fans met the news of the cancellation with indignation nonetheless. With Coyote vs. Acme having a positive friends-and-family screening, many fans did not understand the cancellation of the Looney Tunes film. In response to the backlash, Warner Bros. allowed the filmmakers to shop the movie to other studios with the Feb 23rd deadline looming over their heads.
Offers and Negotiations
Netflix, Amazon, and especially Paramount reportedly showed interest in acquiring Coyote vs. Acme after positive screenings with many praising the film’s portrayal of beloved characters. Paramount even proposed a theatrical release component, however, they were unaware of Warner Bros. Discovery’s refusal to negotiate. The studio demanded $70 to 80 million to cover production costs despite agreeing to screen the film for other distributors. This introduced a take-it-or-leave situation for interested studios when Warner Bros. Discovery refused to entertain counter-offers and opted to treat it as a substantial loss and write-off for tax purposes. Despite backlash from fans, studios, and creatives, the decision is legal and financially prudent and this has been used as a way to relieve some of Warner Bros. Discovery’s heavy debt, currently sitting at $45 billion. Accepting this as a tax break and distributing funds to other projects is being painted as a strategic move.
Executives’ Involvement and Decision-Making
Moreover, it should be taken into account that the Warner Bros. executives that have made this decision had limited involvement and hadn’t seen the finished cut of the film. Consequently, this raised many questions about their decision-making process. Issa Rae brought this up in an interview she did for Porter talking about how executives are more interested in what Wall Street has to say rather than listening to the creatives that actually make them money.
Warner Bros. thought about putting Coyote vs. Acme on hold despite the film having positive responses from test audiences, just like they did with Batgirl. Coyote vs. Acme had the potential to make money, especially since similar family-friendly movies like Space Jam: A New Legacy did well. However, Warner Bros. Discovery doesn’t want to try other options. Technically, it’s okay by the law, but Warner Bros. Discovery shelving completed movies for tax benefits isn’t right because it limits creativity and shows that these executives don’t value the work of these creatives that their platform is made for.
Lack of Transparency and Communications
Warner Bros. didn’t tell the filmmakers much about the offers they got or why they said no, which made the filmmakers feel confused and upset. I would be upset as well if I found out that the studio I trusted to distribute my film wasn’t putting in the effort. The film’s team believes Warner Bros. aims to finalize its fate by the end of the quarter, potentially leading to the movie being shelved without any statement. The studio wanted to sell the movie for the same cost to cover what they spent making it and more. Clearly, they were hoping to get this film off of their roster and make a little more money showing that they care more about money. Warner Bros. keeps making choices people don’t agree with, and then tries to make things better, but it shows why filmmakers should say no to their bad practices.
Final Outcome and Future for Warner Bros.
In summary, Warner Bros.’s habit of putting completed movies like Batgirl and Coyote vs. Acme on hold to save money shows how financial concerns often outweigh creative ones in the film industry. Despite the greater potential to make money and positive feedback from test audiences, Warner Bros. continues to disappoint the general public, which highlights a disconnect between studio executives and consumer wants. Moreover, the studio isn’t very clear about why they make these decisions, which leaves creatives in the dark. Studios need to find a balance between making money and supporting creativity, so everyone can benefit. Warner Bros. needs to consider the impact of its decision as it raises questions about accountability toward key decision-makers. By reevaluating their practices, studios can help filmmakers and support diverse storytelling, instead of prioritizing shareholder interests and focusing on financial viability.
Source: The Wrap
creator and host of the podcast I've Been Meaning to Watch That / tiktoker / youtuber / ATL baddie
This article was edited by John Tangalin.