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Warner Bros. is now erasing games as it plans to delist Adult Swim-published titles
(www.polygon.com)
this post was submitted on 08 Mar 2024
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if you write it off as a tax write off you get to lie about "expected viewership" rather than actual viewership
You can't write off expected future profits. That would essentially make income taxes meaningless. You can use a depreciation schedule for movies that you've produced and spread your tax savings out if you want(and you can avoid doing that by cancelling the movie all together and claiming it on your taxes now as a deduction), but that only matters when you're actually making future money for the movie that you want to reduce your tax burden on. WB is losing a hell of a lot of money in the future to save money right now.
You clearly have no idea what a tax write off is. If you get 50$ profit spend 25$ on your business and pocket 25$ you pay taxes on your pocketed 25$ not the companies expenditures. That is a tax write off. A "company" doesn't pay taxes.
The second part of this comment doesn't make a lot of sense.
My understanding is that the tax system allows for the declaration of depreciation in assets as a business expense. This is fine for assets with transparent market valuations.
The part where this system could be abused is in willfully withholding the release of a movie, overvaluing the expected revenue, and then subsequently declaring the lack of revenue as a depreciation in assets which is then declared as a business expense to reduce the tax burden.
A clearer example of this, with very obvious fraud, might be:
So obviously this example was fraudulous. It's possible that the expected revenue on the cases involving movies was estimated transparently and was fair, because of market forces.
Maybe something more scummy was at play?
Who knows.