Since other posters are asserting that I was wrong, here are the specific articles to which I have been referring, along with excerpts.
Variety:
https://variety.com/2022/film/news/batgirl-movie-why-not-releasing-warner-bros-1235332062/
Deadline Hollywood:
https://deadline.com/2022/08/batgir...slav-jason-kilar-hbo-max-strategy-1235084032/
The Hollywood Reporter:
https://www.hollywoodreporter.com/movies/movie-news/batgirl-hbo-max-movie-dc-canceled-1235191932/
Variety:
https://variety.com/2022/film/news/batgirl-movie-why-not-releasing-warner-bros-1235332062/
Several sources note that “Batgirl” was made under a different regime at Warner Bros., headed by Jason Kilar and Ann Sarnoff, that was singularly focused on building its streaming service, HBO Max. That effort included Kilar’s infamous decision to release the studio’s entire 2021 theatrical slate simultaneously on the streamer, which helped build the subscriber base but also jeopardized the studio’s reputation with top-tier talent (though many agents and stars privately came to appreciate the move when the company paid generous bonuses as a make-nice).
Even before David Zaslav took the reins of the newly formed Warner Bros. Discovery as CEO this spring, the exec went on a well-publicized listening tour designed to repair the company’s relationship with the creative community. As part of that effort, Zaslav has made no secret of reversing Kilar’s strategy and committing to releasing first-run feature films in theaters before putting them on HBO Max.
Deadline Hollywood:
https://deadline.com/2022/08/batgir...slav-jason-kilar-hbo-max-strategy-1235084032/
Much of the decision came down to this: Warner Bros Discovery boss David Zaslav is rejecting Kilar’s strategy to lean heavily into building streaming subscriptions for HBO Max. That was punctuated by his Project Popcorn initiative that put the entire 2021 theatrical slate — including Dune, Godzilla vs Kong, King Richard, The Matrix 4 — day-and-date in theaters and on HBO Max when theater attendance was sparse during the pandemic. Even after he was shown the door, Kilar continued to call the strategy a win. Many did not agree, particularly after Top Gun: Maverick waited and grossed north of $1.3 billion. It’s a decidedly different world from when Kilar made the move. Wall Street no longer is impressed by subscriber numbers as much as profits, as seen by the precipitous decline of Netflix’s stock value.
The Hollywood Reporter:
https://www.hollywoodreporter.com/movies/movie-news/batgirl-hbo-max-movie-dc-canceled-1235191932/
Warners leadership under Zaslav feared it would not deliver the spectacle DC audiences are accustomed to. Still, its smaller feel was baked into its DNA, as Batgirl was supposed to be the first in a number of smaller DC films.
That strategy has been reversed. In May, Zaslav killed a DC Wonder Twins movie for HBO Max that was in preproduction, just weeks after Riverdale’s KJ Apa and 1883’s Isabel May had been cast in the lead roles. At a certain point, a source notes, it doesn’t make financial sense to spend $80 million or $90 million on a streaming movie, as it won’t necessarily attract more subscribers than, say, a $40 million movie. (In an earnings disclosure in April, HBO and its HBO Max streaming service counted 76.8 million combined global subscribers.)
Going forward, a streaming film will be made for a more modest number, “and if it’s for theatrical, it better feel theatrical,” notes a knowledgeable source.