[nickelpro]

Yes, but the reason to do this is that the film is ultimately going to cost more money than it is worth, or the gross represents a rounding error on the studio's balance sheet.

You wouldn't capitalize the expenses of a film that was expected to recoup any meaningful amount of money on release. Either the thing is already costing you more money than it is worth or is a brand risk, thus you look for a way to get out as painlessly as possible.

[jedberg]

They need the money now, they can't wait to depreciate it over time.

[nickelpro]

If the film was going to recoup at least the $10-$20M they'll save in taxes that FY they would release it.

The point is the property is worth negative or trivial value already. Either it's going to cost more to finish than it's worth, or it's worth next to nothing.