Certain expenses will be capitalized while the film is available for release/streaming. Depreciation/amortization will be years for the life of the film. But if you scrap it right away, you can deduct those expenses immediately.
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.
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.