Can someone explain the actual cost of releasing an already completed movie or show? Or removing non-licensed (i.e your own) content from your own platform? I’m thinking of batgirl. Sure, you save...
Can someone explain the actual cost of releasing an already completed movie or show? Or removing non-licensed (i.e your own) content from your own platform?
I’m thinking of batgirl. Sure, you save money by not releasing in theaters, but your own streaming service?
Negligible. Basically zero. The cost of releasing it is not the reason why they choose not to. Batgirl had a budget of $90 million (according to Wikipedia). If it never gets released, they can...
Can someone explain the actual cost of releasing an already completed movie or show?
Negligible. Basically zero. The cost of releasing it is not the reason why they choose not to.
Batgirl had a budget of $90 million (according to Wikipedia). If it never gets released, they can write this off as a loss on the 2022 financial statements. It's very hard to calculate how much money releasing the film would earn them (how many new subscribers would the film attract, how many existing subscribers would they keep thanks to it, and for how many months), but they can calculate the exact amount of taxes they would save by scuttling it (roughly the films budget multiplied by the corporate tax rate; $90,000,000 * 0.21 = $18,900,000). If the estimated lifetime earnings of the film are lower than the estimated tax savings by never releasing it, they're better off burying the film.
It's interesting that so much of this is happening now. I'm thinking the studios may be strapped for cash thanks to inflation and interest rate hikes.
Can someone explain the actual cost of releasing an already completed movie or show? Or removing non-licensed (i.e your own) content from your own platform?
I’m thinking of batgirl. Sure, you save money by not releasing in theaters, but your own streaming service?
Negligible. Basically zero. The cost of releasing it is not the reason why they choose not to.
Batgirl had a budget of $90 million (according to Wikipedia). If it never gets released, they can write this off as a loss on the 2022 financial statements. It's very hard to calculate how much money releasing the film would earn them (how many new subscribers would the film attract, how many existing subscribers would they keep thanks to it, and for how many months), but they can calculate the exact amount of taxes they would save by scuttling it (roughly the films budget multiplied by the corporate tax rate; $90,000,000 * 0.21 = $18,900,000). If the estimated lifetime earnings of the film are lower than the estimated tax savings by never releasing it, they're better off burying the film.
It's interesting that so much of this is happening now. I'm thinking the studios may be strapped for cash thanks to inflation and interest rate hikes.
Thanks for the explanation. And that’s a darn shame. Another sign of a sick system i guess.