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Sony didn't give in to terrorists. The movie theaters refused to show it because hackers threatened violence.
Subsequently, because the film would be shown in few theaters, it would make very little money at the box office. Sony cancelled the release because they can claim it as a total loss on their insurance. Had they released it on VOD, the revenue from the film would not be nearly the same, and they couldn't make the insurance claim.
Not that Sony is blameless in this situation, but fingers should be pointed at the theater chains that didn't want to show the film. Sony was ready to move forward with the release up until these latest threats. Once the theaters refused to show the film, that forced Sony's hand. The best way to recoup their losses was to declare it a total loss. Had they released it on VOD, it likely would've been the most pirated film in history, so that wouldn't be a smart way to make the money back.
Subsequently, because the film would be shown in few theaters, it would make very little money at the box office. Sony cancelled the release because they can claim it as a total loss on their insurance. Had they released it on VOD, the revenue from the film would not be nearly the same, and they couldn't make the insurance claim.
Not that Sony is blameless in this situation, but fingers should be pointed at the theater chains that didn't want to show the film. Sony was ready to move forward with the release up until these latest threats. Once the theaters refused to show the film, that forced Sony's hand. The best way to recoup their losses was to declare it a total loss. Had they released it on VOD, it likely would've been the most pirated film in history, so that wouldn't be a smart way to make the money back.