The DC superhero film intended for HBO Max won’t be released theatrically or on streaming
Warner Bros. Discovery didn’t just shelve “Batgirl,” a nearly completed film that cost roughly $90 million; the project is effectively dead and won’t go to theaters or to streaming. What’s the deal? While there’s a big strategic play here and interest in protecting the future of the DC brand, the shocking move also has to do with lowering the studio’s tax burden and cutting their losses to improve earnings this year.
A company insider told that the studio expects that by not releasing the movie at all, they’ll benefit from a tax treatment by writing off the losses of both “Batgirl”A second movie was originally scheduled for HBO Max. “Scoob! Holiday Haunt.” While these circumstances are rare, it’s not uncommon for companies to write off losses in general. This is a good financial decision, as it allows them to recoup some of the costs.
And ahead of Warner Bros. Discovery’s earnings on Thursday, in which potential big changes are on the horizon for the company and HBO Max, one expert at a production and financing company said that this move is a sign of them working to elevate the DC brand, biting the bullet and doing what they can to distance themselves from the studio’s prior regime.
“Batgirl”Jason Kilar, then WarnerMedia CEO, was the one who developed it. He also remained committed throughout 2021 to his mission. “Project Popcorn” approach to releasing the studio’s entire slate theatrically but also on HBO Max the same day. The move helped boost subscribers for the streaming service but annoyed some talent in the process, even as Kilar and Warner Bros. kept their promise toward 2022’s theatrical slate with movies like “The Batman”Before CEO David Zaslav was officially allowed in, there was a 45-day window of theatre exclusivity.
Why not just release? “Batgirl”Are you a theater owner? Zaslav hasn’t been shy about his commitment to theatrical exhibition, telling the crowd at CinemaCon in April that opening a movie in theaters first provides “a whole stream of monetization”This helps to build a reputation for the film. “has a higher quality that benefits the streaming service.” But a movie developed specifically for streaming doesn’t have the same weightOder budget as other DC titles, like the upcoming “Aquaman” or “Shazam”Later sequels “Batgirl” was part of the previous regime’s attempt to craft smaller-scale DC films for streaming.
On Tuesday, we learned that the new owners of DC titles and their management have committed to making DC titles major theatrical event films. “Batgirl” isn’t that. But insiders added that studio brass loves the film’s directors and star and are actively planning to work with them soon.
“The decision to not release ‘Batgirl’ reflects our leadership’s strategic shift as it relates to the DC universe and HBO Max. Leslie Grace is an incredibly talented actor and this decision is not a reflection of her performance. We are incredibly grateful to the filmmakers of Batgirl and Scoob! Holiday Haunt and their respective casts and we hope to collaborate with everyone again in the near future,”In a statement, a Warner Bros. Picture spokesperson claimed Tuesday. Warner Bros. representative. Discovery didn’t respond to a new request for comment on this story.
In that sense, one agent said that it’s understandable why the studio would kill off both “Batgirl”And “Scoob!,”It was believed that the kill fees associated to the films would be much less than the tens to millions it would cost to market the film and execute a global theatrical rollout.
But financials weren’t the only factor at play here. According to studio insiders, a test screening was done. “Batgirl” didn’t go well, and the studio determined that ultimately the movie simply didn’t work. The notion of putting out a subpar film would run counter to Zaslav’s plans to refine an approach to the DC brand.
“‘Quality, not cost cutting,’ seems to be the official reason,”The agent stated that. The agent also cited a reported directive from Zaslav that HBO Max streaming films should have a budget below $35 million, something that led to DC’s “Wonder Twins”Film also stopped development in May.
It’s also true that had “Batgirl” simply been released, it would’ve expedited the studio’s ability to write off the film for a tax loss. In essence, it was releasing “Batgirl” as planned on HBO Max would’ve resulted in a faster tax write off, but also would’ve resulted in an additional cost for marketing and its quality could’ve waylaid Zaslav’s plans for the DC brand.
The expert said that had the movie been working really well, the studio likely would’ve found at least some way to release it. And in that sense, one entertainment lawyer doubted the studio’s real motivations by attempting to write it off their taxes.
“To not release it is absurd, and by not releasing it at all, there is a significant risk that you can’t deduct it at all until you do something with it like transfer it to somebody,”Sky Moore, a Greenberg and Glusker partner, said that. “It is a stretch to believe they can take a deduction.”
Umberto Gonzalez contributed this report.