Coverage: Sony damage gets worse

As if having the emails of all its employees revealed and its computers still under siege, it just keeps getting worse for Sony. The stars of its upcoming movie “The Interview” are skipping appearances, and Sony is letting theaters back out of showing it because of terrorist threats.

Ben Fritz, Danny Yadron and Erich Schwartzel had these details for The Wall Street Journal:

Sony Pictures executives will let theaters operators decide whether or not to play its forthcoming comedy film “The Interview” after threats of physical attacks surfaced on Tuesday, said a person with knowledge of Sony’s plans.

The decision came after the same people purporting to have carried out a devastating cyber attack on the movie studio threatened to escalate to physical terrorism surrounding the planned Dec. 25 opening of the Seth Rogen comedy.

Such a move—only nine days before a movie opens—is unprecedented in recent Hollywood history and illustrates the stakes in the ongoing attacks on the Sony Corp. unit. Typically, studios and major theater chains work out plans on where and when a film will play months in advance and those plans can’t be changed once a studio is in the midst of a big marketing campaign.

However, after the new threat surfaced Tuesday, Sony was under pressure from theaters particularly for cinemas located in malls and other crowded areas, the person said.

“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,” read a message purportedly from the same people who hacked Sony three weeks ago. “Remember the 11th of September 2001.”

ABC News reported in a story by Lesley Messer, Lee Ferran and Cole Kazdin that the stars of the movie were canceling all press appearances, even further cutting into Sony’s ability to market the movie:

Actors James Franco and Seth Rogen are canceling all press appearances in light of threats a group of hackers made today over their upcoming comedy “The Interview”, a representative for Rogen said.

Earlier today the group claiming responsibility for stealing troves of Sony executives’ emails released a note apparently threatening physical attacks on the theaters where “The Interview” will be played — a threat the Department of Homeland Security said today is not backed up by any “credible intelligence.”

“We will clearly show it to you at the very time and places ‘The Interview’ [will] be shown, including the premier, how bitter fate those who seek fun in terror should be doomed to,” the note reads. “The world will be full of fear. Remember the 11th of September 2001.”

It goes on to say that people should stay away from places where the movie is shown and “whatever comes… all the world will denounce the SONY.”

The note was reportedly released by the Guardians of Peace, the group claiming to be behind previous Sony hack attacks and suspected of being linked to North Korea. “The Interview” is a fictional comedy about two Americans who are asked to assassinate North Korean leader Kim Jong Un. Today’s message is the first time the group has discussed “The Interview” by name rather than relatively vague references.

Michael Cieply and Brooks Barnes said in The New York Times that the email warning had raised the threat to terrorism:

That email warning turned a continuing attack on Sony by hackers from a matter of theft to one of terrorism. A spokeswoman for the F.B.I. said it “is aware of the threat and is continuing to investigate the attack on Sony.”

An official with the Department of Homeland Security said the department was analyzing the threat but as yet had found no clear indication of an active plot against theaters. Sony had no comment.

Tuesday’s development posed an ugly dilemma for Sony and exhibitors: whether to pull “The Interview,” caving to hackers who have wreaked havoc with Sony’s digital systems for weeks in an attempt to block the release, or to forge ahead, risking possible violence and potential legal liability. In an already-fragile industry, studio executives privately voiced concern that any theater violence could swing the market further toward home viewing.

Several people briefed on Sony’s internal discussions on Tuesday said the studio was not withdrawing the film but had told theater owners that it would not object if they canceled or avoided booking “The Interview.” Those people spoke on condition of anonymity. Theater owners have been particularly pressed by the operators of malls and stores within them to avoid the film, two of those people said.

USA Today reported in a story by Elizabeth Weise, Ann Oldenburg and Kevin Johnson that law enforcement was getting close to finding the source of the hacks:

Federal officials say they are close to making a determination on the source of the hack on Sony Pictures Entertainment.

A federal law enforcement officer, who was not authorized to discuss the case on the record, could not say when the determination might come.

The statement Tuesday night came as Sony and the movie industry as a whole considered the possible consequences of an Internet message threatening thousands of movie theaters that will being showing The Interview on Christmas Day.

Either way, the threat of terrorism is one that many are taking seriously. Sony is likely to struggle for years under the costs of fixing its technology and the bad press for the leaks. If people are afraid to see the movie, the company will likely have to take a large loss on a film with two big stars. Not exactly the Christmas box office Sony was expecting.