Sony scraps 'The Interview' release

Sony Pictures Entertainment's extraordinary decision to scrap the Christmas release of "The Interview" came amid mounting pressure from powerful theater owners and other studios concerned that the film's release could keep moviegoers away from multiplexes during the holidays, one of the most lucrative periods for Hollywood.

The decision would cost Sony perhaps $70 million for the costs of making the film and marketing efforts to date, and could also prompt an executive shake-up, industry analysts said. Sony Pictures Entertainment is led by Chairman Michael Lynton and Co-Chairman Amy Pascal. "By canceling release of the film, Sony Entertainment is admitting it made the wrong decision to go forward," said Laura Martin, senior media analyst at Needham. "They are now succumbing to pressure that they obviously underestimated six months ago." Sony executives had originally resisted postponing "The Interview," fearing that doing so would be a victory for the hackers, and set a dangerous precedent for future threats.