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I wonder if Sony has an insurance policy that pays if a movie can't be released? I can imagine such a thing would exist to protect them in the event of a copyri
by jws 12y ago
I wonder if Sony has an insurance policy that pays if a movie can't be released? I can imagine such a thing would exist to protect them in the event of a copyright problem with the story or script. I see lots of movie industry insurance, but it appears to be geared toward filming accidents, so this may not exist.
- waterlesscloud 12y agoThere's Errors and Omissions insurance for things like copyright/trademark violations. But getting it requires a pretty thorough inspection of the film, and it's hard to imagine the E&O people overlooked the whole risk of North Korea. I don't know if they pay out in the case of being unable to release the film, it's mostly protection against lawsuits. It'd be interesting to know exactly how that plays out though.
- anigbrowl 12y agoThere's a kind of production financing insurance called a completion bond, but that is meant to hedge against the risk of running out of money during production or whatever. I don't think there's any sort of financial instrument that insures against this sort of thing - if you know or suspect an outcome like this for whatever reason, the smart move would be to hedge against a fall in the stock price by buying a put option. However, a $40m loss is pretty small in the face of Sony's ~$1.8 billion in annual revenue. Every big studio has a few big-budget bombs each year, so it's not that big a tragedy in commercial terms, (plus they'll probably make the money back with ease when the DVD comes out).