**Warner Bros. Discovery’s Decision to Shelve Completed Films**
In a snapshot from the movie *Coyote vs. Acme*, we see Wile E. Coyote alongside actor Will Forte, shared online by Eric Bauza in December.
Last November, Warner Bros. Discovery made headlines by revealing its decision not to release *Coyote vs. Acme*, a movie blending animation and live-action featuring John Cena and Will Forte, despite having wrapped up filming a year earlier. The WB Motion Picture Group stated to the *Hollywood Reporter* that the studio’s new focus on theatrical releases led to this shift in strategy upon the relaunch of Warner Bros. Pictures Animation in June.
In 2022, the studio also scrapped the production of the *Batgirl* movie after investing around $90 million in its development, citing it as part of a strategic pivot concerning the DC universe and HBO Max.
During an earnings call, Warner Bros. Discovery CEO David Zaslav addressed the shelving of *Scoob!: Holiday Haunt*, emphasizing the studio’s commitment to releasing movies only when they have full confidence in them.
The recent trend of canceling projects at Warner Bros. has sparked frustration among fans and left cast and crew members disheartened. It underscores the authority Hollywood studios wield in mothballing finished movies, regardless of the effort put into their completion.
According to Chad Fitzgerald, an entertainment lawyer based in Los Angeles representing talent in studio disputes, studios retain full ownership of the finished product and hold the discretion to decide its fate, whether that means showcasing it worldwide or stashing it away, allowing it to gather dust and fade into obscurity.
Financial Considerations Behind Scrapping Completed Projects
When NPR inquired about Warner Bros.’ decision to withhold the release of Coyote vs. Acme, they remained silent on the matter.
This move left many questioning why the studio would back away from a movie on which they had already invested an estimated $70 million.
According to Hollywood financial analysts, the choice to mothball finished movies by studios primarily boils down to financial factors.
Stephen Glaeser, a professor of accounting at UNC’s Kenan-Flagler Business School, suggests that film studios might opt to predict poor performance in a movie and decide to cut their losses instead of selling it at a discounted price or investing more in its marketing. According to him, the expenses associated with marketing and other requirements could be significant if they were to distribute the film themselves. Alternatively, streaming services might offer to purchase the movie without the need for extensive marketing, but the offers may not be lucrative.
Warner Bros. briefly allowed filmmakers to explore options for distributing “Coyote vs. Acme” to streaming platforms. However, reports from “The Wrap” in February indicated that the studio turned down offers from major streaming services like Netflix, Amazon, and Paramount.
Studios may also aim to avoid a situation where they release a movie that fails to resonate with audiences. By holding back a film, executives can avoid the risk of poor box office sales and negative reviews. In the case of “Coyote vs. Acme,” director Dave Green mentioned on X (formerly Twitter) that the film received positive feedback from test audiences.
The decision to abandon a project could also indicate a shift in a studio’s priorities. Following the merger of Warner Bros. and Discovery in 2022, Zaslav announced plans for a “reset” of the DC Comics cinematic universe.
Speculation in media reports suggests that Warner Bros. might claim a tax write-off for canceling “Coyote vs. Acme.” Some critics view this as a strategy for the studio to benefit from delaying the movie’s release.
In the entertainment industry, the term “Hollywood accounting” humorously refers to the opaque financial practices that studios and companies employ to boost profits, even in cases where projects are deemed failures.
Warner Bros. did not provide responses to NPR’s inquiries regarding a potential tax write-off for “Coyote vs. Acme.” Glaeser mentioned that any tax advantages would only help mitigate the financial impact of scrapping the movie’s release, with the studio still facing losses from the project.
Matt Belloni, a reporter from Puck News, informed NPR in November that Warner Bros. faced pressure to reduce expenses, and mothballing finished movies allowed executives to leverage financial benefits by accounting for losses on their financial statements.
Impact of mothballing finished movies studios on cast, crew, and fans
While mothballing finished movies may align with a studio’s financial interests, this decision can bring little solace to the dedicated cast, crew, and fans eagerly anticipating the film’s release.
The recent mothballing of Coyote vs. Acme has resonated deeply within the entertainment community. This film, inspired by a satirical New Yorker piece, depicted Wile E. Coyote’s legal battle against the Acme company due to the repeated failures of their products in aiding him to capture the elusive Road Runner.
Mothballing Finished Movies Studios: A Trend in Hollywood
Will Forte, who starred in the film, expressed his disappointment with the decision to shelve it, calling the movie “incredible” in a recent post on X. He commended the cast and crew for their hard work, dedication, and love that shines through in every frame.
In response to Forte’s post, actor Michael McKean praised him as “a truly decent dude being truly decent” and expressed his eagerness to watch the movie.
One fan voiced their hope that Warner Bros. would show the Looney Tunes brand the love and appreciation it deserves.
An online petition, initiated by a background actor from “Coyote vs. Acme,” urged Warner Bros. to release the film, garnering over 18,000 signatures by the time of this publication.
Warner Bros.’ Decision-Making Under Scrutiny
The increasing number of movies mothballed by Warner Bros. has raised concerns among critics regarding studio leadership.
During the Golden Reel Awards in Los Angeles, comedian Patton Oswalt humorously mentioned the reported tax write-offs the studio is taking on shelved projects. He quipped about the industry flourishing and joked about a fictional three-picture deal with H&R Block, as reported by the Hollywood Reporter.
Entertainment lawyer Fitzgerald acknowledged Warner Bros.’ past reputation as a talent-friendly studio. While not explicitly stating a shift, he highlighted the impact of recent cancellations on Hollywood.
“These recurring incidents with the same studio are beginning to sour both industry insiders and the fan community,” Fitzgerald remarked.
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