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Chronicles

The story behind the story

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Sony Entertainment CEO blames theaters for cancellation of The Interview, still wants to release the film

Sony exec fires back at President Obama  —  Sony Entertainment CEO Michael Lynton, denying that the studio had “caved” by scrapping next week's opening of “The Interview,” …

CNNMoney.com Frank Pallotta

Context & Ripple Effects

Two days after Sony said it had no further release plans for The Interview, Michael Lynton is pushing back on two fronts at once — denying the studio 'caved' and shifting blame to the major theater chains whose withdrawals forced the cancellation. The timing matters: President Obama had just publicly labeled the decision a mistake, saying North Korea acted alone, so Lynton's statement is as much a reply to Washington as to Hollywood.

The stakes are the film itself, not just the messaging. Lynton insists Sony still wants to release it, and the coverage shows how quickly that intent turned into distribution workarounds — a tentative deal with YouTube within four days, then Christmas Day screenings in independent theaters, and ultimately $31M in streaming revenues that made it Sony's top online film.

First-order effects

  • Lynton reframes the cancellation as exhibitors' choice, not Sony's, directly contesting Obama's characterization and buying the studio political cover while it searches for non-theatrical outlets.
  • Major theater chains are put on record as the ones who pulled the film, exposing the split between multiplex chains and the independent venues that later agreed to screen it on December 25.

Second-order effects

  • Digital platforms become the pressure valve: YouTube's tentative agreement to stream the film days after the theatrical collapse shows studios can route around exhibitor refusal when the political heat demands release.
  • Theater chains' veto over controversial releases weakens once a studio proves an alternative channel works — exhibitors lose leverage as gatekeepers for politically charged titles.

Third-order effects

  • If the pattern holds, day-and-date theatrical windows become negotiable under duress rather than fixed convention, with digital-first fallbacks turning a security crisis into a new release template.
  • A presidential call for a 'proportional response' against North Korea signals state-level involvement in what was a studio's distribution dispute, pointing toward governments weighing in on cyber coercion of private media decisions.

The trend: The Interview's collapse and rescue marks the moment theatrical exclusivity proved breakable, with streaming platforms stepping in within days when exhibitors refused a politically targeted film.