No Movie Theaters, No Video on Demand. No Reputation? The Implications of Sony's Cancellation of 'The Interview'

A $44 million budget for a film these days is not considered 'major.' Sony's stock price would not have taken a hit if the movie bombed at the box office.

The real concern was the liability if it caused a literal bomb.

Not only would the cost of any damage or casualties be worrisome - but the impact on audiences heading to see other movies over the holidays might give theater owners, mall owners and Sony's competitors grounds to sue. Absolutely no one is mollified by the bland assurances offered by an utterly unconvincing cavalcade of government officials.

The larger issue is that Sony's putative leaders have demonstrated technological cluelessness well beyond that limited to the mere cyber security of their information.

It is, sadly, a commentary on the arrogance of Sony's Hollywood executives - a subsidiary of a global technology company, no less - that they thought there would be no blowback if they greenlighted a film about assassinating an actual world leader. After all, he was from some humorless, backwards 'Hermit Kingdom' where fermented cabbage is considered a delicacy. What could possibly go wrong in the face of the global humiliation Sony would visit on them?

So who's laughing now? The US cyber defenses have been shown to be, shall we say, a work in progress. The Obama Adminstration adds to its reputation for foreign policy ineptitude. Those involved are too frightened even to release the film in VOD (video on demand) format, handing every crank in the world a moral victory. The principle of free speech and standing up to terrorism has been rendered meaningless by corporate and national leaders too unsure of their own ability to respond - and too focused on the implications for their own futures, leaving one to wonder why this possibility did not occur to them beforehand. Sony's role in this probably puts executives' jobs at risk and quite possibly, the corporation in play.

One can imagine Vladimir Putin, Xi Jinping and Kim Jong-un texting each other high-five emoticons.

In the service of US national pride and corporate financial salvation, here's a modest idea for a movie script that might help Sony recoup it's losses: a small backward nation, facing a bullying super-power, enlists its talented if unsung and underfunded tech geniuses to turn the tables on its rich, arrogant antagonist...JL

Bryan Alexander, Andrea Mandell and Elizabeth Weise report in USAToday:

The overarching worry from theater owners wasn't "that people would stay away from The Interview, it was that they would stay away from The Hobbit and all the other movies opening on Christmas Day."
Sony has pulled the plug on The Interview – on any platform.
The studio has canceled the release of the Seth Rogen-James Franco comedy, which was set to open Christmas Day.
In a statement Wednesday, Sony said, "In light of the decision by the majority of our exhibitors not to show the film The Interview, we have decided not to move forward with the planned December 25 theatrical release. We respect and understand our partners' decision and, of course, completely share their paramount interest in the safety of employees and theater-goers."

USA TODAY

Official: North Korea behind Sony hack

Some industry insiders speculated Sony might release the film in the video-on-demand format, but the studio tells USA TODAY there will be no further release plans of any kind.
"I think they just want to wash their hands of it," says Matthew Belloni, executive editor of The Hollywood Reporter.

USA TODAY

Celebs react to Sony pulling 'The Interview'

Hollywood immediately pushed back. "Today the U.S. succumbed to an unprecedented attack on our most cherished, bedrock principle of free speech by a group of North Korean terrorists who threatened to kill moviegoers in order to stop the release of a movie," said screenwriter Aaron Sorkin in a statement, accusing the media of focusing on industry gossip "over a story with immeasurable consequences for the public."
The decision comes after five major theater chains including AMC Entertainment and Regal Entertainment announced they would not screen the film.
"Due to the wavering support of the film The Interview by Sony Pictures, as well as the ambiguous nature of any real or perceived threats, Regal Entertainment Group has decided to delay the opening of the film in our theatres," a statement said.
The stampede began Tuesday night when Carmike, the fourth-largest cinema chain in the country, decided to cancel its planned showings of the film.
A second theater chain, Bow Tie Cinemas, announced it was pulling the movie Wednesday morning.
The chains are reacting to a message posted by hackers on Tuesday that threatened a "9/11"-style attack on theaters that screened the film about an assassination attempt by bumbling journalists against North Korean leader Kim Jong Un.
Bow Tie was "saddened and angered" by the threats, CEO Ben Moss said in a statement.
"We hope that those responsible for this act are swiftly identified and brought to justice," Moss said.
Movie theater stocks rebounded shortly after the chains canceled the film. At issue "was more the fear of the fear," says Oliver Lyttelton, reporter for Indiewire's The Playlist.
The overarching worry from theater owners, Lyttelton adds, wasn't "that people would stay away from The Interview, it was that they would stay away from The Hobbit and all the other movies opening on Christmas Day."

Federal officials say they are close to finding the source of the hack. A federal law enforcement officer familiar with the situation but not authorized to publicly speak about it could not say when an answer might come.
Events surrounding the hack attack on Sony Pictures Entertainment began to cascade late Tuesday after the hackers' message went public.
A note from the Guardians of Peace group posted online Tuesday morning warned potential moviegoers, "We recommend you to keep yourself distant from the places at that time. (If your house is nearby, you'd better leave.)"
"We will clearly show it to you at the very time and places 'The Interview' be shown, including the premiere, how bitter fate those who seek fun in terror should be doomed to," it continued.



The Interview was scheduled for a wide release, which would have put it in somewhere between 2,000 to 4,000 theaters.
Sony stands to lose tens of millions of dollars by pulling the film. Published reports estimate production costs upward of $44 million.
"It's a significant cost to absorb but it's nothing compared to the cost of dealing with the rest of this hack," says Belloni. "They're looking at tens of millions of dollars if not hundreds of millions of dollars in potential lawsuits and money that they're going to have to spend to fix their infrastructure."

Law enforcement had been investigating the Sony hack since it first became public Nov. 24.
Where does Sony go now? "I think the question is: Do these leaks stop now that the hackers have gotten what they want?" says Belloni.