Why wouldn’t Warner Bros. just release Batgirl on HBO Max?

The film world has reacted in shock to Warner Bros.’ decision to shelve its BatgirlEven though the movie was in post-production, it is essentially complete. These moves are uncommon and seem absurd. It seems impossible that any company would just dump a project worth $90 million. In the past, it’s been more common for troubled projects to be quietly released on streaming or home video formats than for them never to see the light of day.

Warner Bros. could have recouped some of their investment by releasing the movie on HBO Max, its streaming service. Actually, BatgirlIt was initially intended to be an HBO Max exclusive. This was also part of its demise.

The New York Post presented this as a decision driven solely by quality in the original story. In sensational terms, the movie was called “unspeakable,” “irredeemable,” and a “DC disaster” that would severely damage the brand. Further reporting shows that these statements are inaccurate or oversimplified.

BatgirlThe film was directed by Bilall Fallah and Adil El Arbi, well-respected duo who also made the 2020 sequel. Bad Boys For LifeThey also served as the principal directors. Ms. Marvel for Disney Plus. Cast featured In the Heights Leslie Grace stars alongside the acting heavyweights J.K. Simmons, Michael Keaton and Brendan Fraser. Deadline reported that the film tested with audiences and the result “wasn’t that bad,” despite unfinished effects.

Variety’s sources agreed that the decision was not about the film’s quality. They linked the decision to a new strategic move by Warner Bros. Discovery organization, led by new CEO David Zaslav, to ensure all DC movies are theatrical releases “at blockbuster scale.” Batgirl’s budget, though far from tiny, had been set with a streaming release in mind and would not have matched the scale of planned DC releases such as Aquaman and The Lost Kingdom The Flash.

Zaslav is said to be seeking an executive to oversee a newly centralized DC film division — to essentially play the role Kevin Feige does at Marvel Studios. The studio is also considering promoting BatgirlPuck said that it was slated for a theatrical release. But, this notion seems to have fallen out of fashion.

Even a desire to reform the chaotic management of DC properties at Warner Bros. can’t quite account for the decision to can the film outright, however. Two other factors could explain the extreme nature of this decision: an accounting quirk and a cultural shift in Hollywood.

Variety’s follow-up and the Deadline report point fingers at studio accountants. Variety said the bean-counters decided a tax write-down was the most financially sound way to recoup the film’s costs, while Deadline reported that that the opportunity to write off the film’s losses was a temporary by-product of Warner Bros.’ merger with Discovery, and the window would close on such accounting maneuvers in mid-August. This would explain the unexpected nature and suddenness of the decision.

However, the decision seems to be driven also by an antipathy toward streaming entertainment as the ultimate source of Hollywood entertainment. This goes beyond DC brand management. Zaslav has openly disowned his predecessor Jason Kilar’s decision to release all Warner Bros. films, including Dune Resurrections of the MatrixThe pandemic was reported day-to-day on HBO Max. Kilar’s strategy to grow HBO Max subscribers worked. But, now, it is questionable whether the long-term worth of those subscribers is greater than box office revenue.

Hollywood executives and Wall Street investors alike have noticed that streaming market leader Netflix’s focus on subscriber growth above all else looks shaky as soon as that growth stops. Paramount has proven the wisdom to sit on its laurels. Maverick is the Top Gun Paramount Plus had its own streaming platform, Paramount Plus. However, it was not available for use during the film’s run of box office success that topped $1.3 billion in two years.

Movie theaters clearly aren’t dead yet. Many Hollywood professionals believe that the theatrical release is a status quo on streaming services when it arrives. Batman After making Warner Bros. $770million in theaters, he is believed to have done exceptionally well on HBO Max. As Deadline puts it: “Companies have come around to philosophies espoused by the likes of Sony’s Tom Rothman and Universal’s Donna Langley, that films gain cultural relevance when they first debut in theaters with an appreciable theatrical spend. When they appear on streaming sites 45 days or so later, they are prized because they have cultural relevance.”

Viewing habits may have changed over the last few years, but money talks, and it’s clear that films can still make money in theaters as well as deliver subscriber growth. The trend for streaming movies directly to your computer is no more. Batgirl’s cancellation may be a matter of accounting expediency, but it’s also a symbolic move that is surely not lost on investors and industry-watchers. This is Hollywood saying it won’t play that game anymore.