Hacking Could Cost Sony $200 Million

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CBJ – Sony Pictures’ decision to cancel the release of its movie “The Interview” could wind up costing the studio up to $200 million when all is said and done.

Studio executives were hesitant about moving forward with actor Seth Rogen’s idea to make a comedy about a plot to kill North Korean dictator Kim Jong-un but ultimately forged ahead with the project. The move backfired when hackers linked to the North Korean government stole documents and threatened Sony employees and fans. North American theater chains, concerned about safety, pulled out.

The Sony Corp. studio spent about $80 million to make and market the film, whose release was canceled after threats of violence by hackers, according to Wade Holden, a researcher at SNL Kagan. On top of that, there’s the bill for rebuilding Sony’s computer network, where security has been completely compromised and internal damage done.

Celebrities such as Jimmy Kimmel, Rob Lowe, Ben Stiller and Judd Apatow have all said they are appalled and disappointed that Sony would cave.

The following quotes come from various verified Twitter accounts:

“I think it is disgraceful that these theaters are not showing The Interview. Will they pull any movie that gets an anonymous threat now?” – Judd Apatow.

“An un-American act of cowardice that validates terrorist actions and sets a terrifying precedent.” – Jimmy Kimmel

“It’s a sad day when @SonyPictures bow to the will of a brutal dictator who murders his own people.” #TheInterview @Sethrogen @JamesFrancoTV – David Walliams

“Really hard to believe this is the response to a threat to freedom of expression here in America.” – Ben Stiller

“Wow. Everyone caved. The hackers won. An utter and complete victory for them. Wow.” – Rob Lowe

“Saw @Sethrogen at JFK. Both of us have never seen or heard of anything like this. Hollywood has done Neville Chamberlain proud today.” – Rob Lowe

@CanBizJournal

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