On September 30, the streets of Hollywood saw Lady Gaga and Joaquin Phoenix on the red carpet at the TCL Chinese Theatre, marking the highly anticipated premiere of Joker: Folie à Deux. Warner Bros. Discovery CEO David Zaslav joined the celebration at the Sunset Tower after-party, mingling with the film’s A-list leads. Despite the glittering night, one thing was notably absent—the usual DC Studios fanfare. DC Studios heads James Gunn and Peter Safran were nowhere to be seen, underscoring the behind-the-scenes tension that plagued the $200 million Warner Bros. musical.

The rift started early on. Todd Phillips, director of the original Joker, secured a unique position that allowed him to bypass the usual oversight of DC executives. “Phillips wanted nothing to do with DC during this film,” says one insider familiar with the production. Although Gunn voiced his support for the film online, Phillips kept his distance, even going so far as to exclude the DC Studios logo in the opening sequence—an omission that became glaringly obvious during the film’s premiere in Los Angeles.

The LA vs. London Decision That Added to the Budget

Production for Joker: Folie à Deux began in December 2022, at a time when studio heads were considering every possible way to lower costs. With a price tag that eventually ballooned to $200 million, Warner Bros. initially pushed to film in London, which would have saved 20% of the overall budget. However, Phillips insisted on filming in Los Angeles, despite the cost difference.

Warner Bros. Discovery CEO David Zaslav even met with Phillips shortly after the WarnerMedia-Discovery merger to discuss the idea of shifting production to London. But Phillips held firm. The director’s insistence on shooting in Los Angeles, along with the hefty $20 million paydays for both Phoenix and Lady Gaga, left little room for compromise.

While the LA location allowed the film to tap into local talent and iconic venues, the decision came at a steep price—one that Warner Bros. is now reeling from. Insiders suggest that the company would have been in a much better financial position had Phillips agreed to the London alternative. “The budget could have been streamlined, but Phillips wanted LA, and he got it,” one source explains.

A Missed Opportunity to Align with DC’s Vision

As Warner Bros. grapples with the aftermath of Joker: Folie à Deux‘s underwhelming box office performance, many are questioning the decision to allow Phillips to operate so independently. DC’s newly appointed heads, Gunn and Safran, were expected to shape the direction of all DC films in the post-2022 era, similar to Marvel’s cohesive approach under Kevin Feige. But Joker: Folie à Deux was an exception to this rule, and the result was a film that alienated its core DC fanbase.

Phillips refused to engage with DC leadership, opting to communicate solely with Warner Bros. executives Michael De Luca and Pamela Abdy. Even Warner Bros.’ feedback was often disregarded. Phillips went so far as to bypass traditional test screenings, choosing instead to debut the film directly at the Venice Film Festival, where it received harsh reviews. With a 33% Rotten Tomatoes score and a disastrous “D” CinemaScore, the film’s critical reception matched its poor box office turnout, pulling in a shocking $37.7 million on its opening weekend domestically.

Los Angeles: A High-Cost Location with Mixed Returns

For all the excitement that Los Angeles brings to a production, the city’s high costs come with significant risks. Phillips’ decision to film in LA rather than in a more cost-effective city like London didn’t just inflate the budget—it contributed to what many are calling a black eye for Warner Bros. “This was supposed to be a surefire hit, but instead it’s turned into a financial disaster for the studio,” says industry analyst Dan Ives.

With local benefits such as tax incentives in New Jersey or Georgia unavailable due to Phillips’ preference for LA, Warner Bros. had to shoulder the high costs of shooting in one of the most expensive cities in the world. While the LA location brought certain conveniences and star power, it wasn’t enough to offset the film’s broader issues.

A “Folie” to Remember

In hindsight, many wonder if the production could have benefited from tighter collaboration with DC leadership and more willingness to adhere to fan expectations. Joker: Folie à Deux is now positioned as a cautionary tale for studios seeking to recreate the magic of a billion-dollar success. With high salaries for its stars and director, along with a budget that ballooned due to its LA shooting location, the film failed to connect with its audience.

As Joker 2 struggles to meet financial expectations, Warner Bros. is left to reckon with a project that strayed far from its original fanbase and paid the price—literally.