NEW YORK (AP) – The blow that the hacking attack has dealt Sony is spreading beyond the entertainment corporation itself to theatre chains and movie goers alike. And the financial toll is adding up too.
Threats of violence against movie theatres. The New York premiere of The Interview cancelled. Leaks of thousands more private emails. Lawsuits by former employees that could cost tens of millions in damages.
The fallout from the Sony Pictures Entertainment hack that began four weeks ago exploded Tuesday after the shadowy group calling themselves Guardians of Peace escalated their attack beyond corporate espionage and threatened moviegoers with violence reminiscent of the terrorist attacks of September 11, 2001.
The Department of Homeland Security said there was “no credible intelligence to indicate an active plot against movie theatres”, but noted it was still analysing messages from the group. The warning did prompt law enforcement in New York and Los Angeles to address measures to ramp up security.
Those security fears spurred Sony to allow theatre chains to cancel showings of the Seth Rogen and James Franco comedy The Interview, that has been a focus of the hackers’ mission to bring down Sony.
A spokesperson for Landmark Sunshine cinemas said the New York premiere of The Interview, scheduled for tonight, has been cancelled. Carmike Cinemas, which operates 247 theatres across the country, was the first to cancel its planned showings of the film, according to The Hollywood Reporter.
B. Riley analyst Eric Wold estimates that if box office and attendance revenue is completely lost for Carmike for The Interview, that could cost the chain 1.5 per cent to 1.9 per cent of fourth quarter revenue – not a major loss – but if there is an event that happens in a theatre, that would swell dramatically.
“Unfortunately, there is a lot of uncertainty that this brings into play for all exhibitors this holiday season,” he said. “The question is whether or not moviegoers are willing to see another movie in its place … or if this box office and associated attendance is just a loss.”
Benchmark Co. analyst Mike Hickey said other chains are likely to follow suit and pull the movie.
