This example doesn’t work. You’d only be able to deduct your cost to buy them, not their potential value.

It only works if you pay $1M now and then years later burn them to offset a different $1M in income. But that would still be stupid as you’re better off selling them for $1M than burning.

I don’t think you’re thinking the math through properly.

Studios aren’t writing these off because they are stupid or scheming. They are writing them off because they can’t sell them.