Sony Hack Could Cost $100 Million — Among Other Things
Not only was the recent cyber attack on Sony studios a PR nightmare as it revealed racist and insulting comments by execs in exposed emails, but it could also be very expensive for the Hollywood giant.
The hack could cost Sony as much as $100 million, according to cybersecurity experts. But it will most likely be “less than the $171 million Sony estimated for the breach of its Playstation Network in 2011 because it does not appear to involve customer data, the experts said,” reports The Chicago Tribune.
Among the major costs are: an investigation, computer repair or replacement, preparation of a prevention plan against future attacks, as well as lost productivity during the disruption.
In addition to the hack revealing damaging emails, such as an exec calling Kevin Hart a “whore,” it was a massive blow to the company in many ways.
“The attack, believed to be the worst of its type on a company on U.S. soil, also hits Sony’s reputation for a perceived failure to safeguard information, said Jim Lewis, senior fellow at the Center for Strategic and International Studies,” reports the Tribune.
According to Lewis, it generally takes at least six months after a breach to determine the full financial impact.
Of course the company does have insurance to cover data breaches and cybersecurity insurance typically reimburses only a portion of costs from hacking incidents, say experts.
Those claiming responsibility for the attack posted yet-to-be-released Sony films online, such as Annie, which most likely affect ticket sales.
And if Hollywood stars, producers, directors, or financiers have lost confidence in Sony and take projects elsewhere, this could really hit the studio’s bottom line.