70 Million Down the Drain: The Film We’ll Never See Because of Tax Breaks

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Hey there! Remember those thrilling tales of Pixar almost losing Toy Story 2 due to a mishap or Warner Bros.’ employee-saved Toy Story, and the buried E.T. game copies in New Mexico? Those stories are just mind-blowing! However, the reason Warner Brothers’ latest flick might not make it to your screen is not as dramatic – it’s all about taxes. Here’s a rundown of this peculiar case that has everyone talking.

Coyote vs. Acme: The Big Delete

As a dedicated fan, I’m thrilled to share some exciting news about the cunning coyote making a comeback in the world of cinema! Warner Bros., known for its knack for revitalizing timeless characters, is now taking on the task of resurrecting what was believed to be the most famished coyote in film history. The intriguingly titled “Coyote vs. Acme,” a blend of live-action and animation, stars the talented Will Forte.

Initially deemed dead and buried, a test screening overflowing with acclaim gave the filmmakers the green light to peddle their product. Streaming titans such as Netflix, Amazon, and Paramount showed interest, but Warner Bros. asked for an astronomical sum of $75–80 million – a figure even the streaming giants found too steep.

In the trailer released so far, we catch a glimpse of the Coyote suing Acme, the very company that supplied him with products that consistently failed to help him capture the elusive Road Runner. It appears as though this legal battle was destined for defeat even before it began.

The film’s production and marketing costs around 70 million dollars each, meaning it must earn double that amount, approximately 140 million, to cover its expenses (break-even point). If the movie isn’t released, they can write off the 70 million as a loss, saving them 30 million in taxes. Consequently, due to the need for the film to not only break even but also generate an extra 30 million in profit, it will not be released. This is because Warner Brothers has a moral obligation towards the numerous artists involved in the production, and as an economics major, I’m aware that you might not fully comprehend these financial complexities.

Creature of Habit

Warner Bros has a pattern of generating excitement with movies but keeping them out of reach by not releasing them. The 90 million dollar film ‘Batgirl’ is another instance of this. Unfortunately, the movie wasn’t fully completed as there were still scenes to be shot and visual effects to be added. However, Warner Bros looked at an early version and decided to halt production and never distribute it – once more, apparently due to tax considerations.

Even the lovable Scooby-Doo isn’t immune to storage, as a movie titled “Scoob! Holiday Haunt” planned for release in December 2022 never saw the light of day. Discovery Inc. decided to trim expenses and concentrate exclusively on films intended for cinemas rather than those destined for streaming platforms.

In our world, both are true, but for a Coyote, it appears that death might not always be inevitable, yet taxes undoubtedly are.

Would you enjoy watching those movies, and how do you think you would have reacted if you were the CEO of Warner Brothers? Please share your thoughts below!

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2025-02-10 14:39