Sony Pictures (NYSE:SNE) Dilemma
Sony Pictures (NYSE:SNE) Entertainment is an American entertainment subsidiary of the Japanese multinational brand Sony. It’s a well-known name when it comes to motion Pictures (NYSE:SNE), television production and distribution units. Lately, Sony (NYSE:SNE) has hit troubled time since a security breech in its system. The online system is under attack as the hackers come with a list of demands. And on top of those demands is that Sony Pictures (NYSE:SNE) doesn’t release the movie “The Interview”. This movie is aimed at poking fun at North Korean leader, Kim Jong. The film could easily generate over a $100 million in the United States as well as in other countries.
The movie stars two of Hollywood’s most well reputed actors Seth Rogen and James Franco. This combination is one of the key to the anticipated success of the film. According to Box Office Mojo, the cast alone could cater for over $90 million during the holiday season. The release is expected on Christmas Day. The online breach however makes the release questionable at this point.
According to the editors at Box Office Mojo, The movie is expected as the next big thing by Seth Rogen after seven months after his film called Neighbors, which was the star’s highest grossing live film, doing business of over $150.1 million. Another element that makes “The Interview” special is its directorial leads Rogen and Evan Goldberg, which is their second directorial effort after last year’s “This is the End”, which also did business of worth $100 million.
Looking at the type of set and locations used for the film as well as the starring of two of Hollywood’s well-known names, the movie would have cost over $50 million. Putting so much into the movie financially and now having the release barred could leave a big hole in the company. But according to sources, Sony Pictures (NYSE:SNE) might not have a choice at this stage as the hackers have hit them deep. Threats are being made against the employees of the firm and these threats seem to have the tendency to become reality. The hackers also have in their possession sensitive data about many executives and stars, release of which could be damaging for the company and those involved. The hackers have also threatened to release portions of other upcoming films prematurely at different filming sites, this could prove as a threat to sales and profits.
Analyzing the above state, it seems like Sony Pictures (NYSE:SNE) is stuck in a rut. Either they give in to the hackers demand and stop the release of “The Interview”, which would effects the company financially, making it difficult to recover from or the company could go ahead with the release, and not only risk its employees well-being, but also of other stars and executives as well as risking a negative impact of its sales and profit.
It seems like the company’s future is at stake with a very few options. However, release of this new movie might restore some of the glory.