They’ve just cancelled their upcoming film “Coyote vs. Acme,” and everyone is calling it a tax write-off, just like they did with the cancelled Batgirl film.
Having spent so much on the production of these films, how is it beneficial to them to cancel the film outright? What is a tax write-off in that sense?
In: Economics
In addition to tax benefits, studios have various insurance policies in place to protect themselves against loss. One type of policy protects against films not being released. If they think the film will make less than the insurance payout, they don’t release it.
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