Sony's Decision to Pull 'The Interview' Questioned

The media giant's CEO defends pulling the comedy after hackers threatened violence upon its release.
4:45 | 12/20/14

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Transcript for Sony's Decision to Pull 'The Interview' Questioned
And now to the fast-moving developments in the massive Sony hack. President Obama calling out the studio saying they should not have caved to the terrorist's demands and pulled the plug on the movie. Yes, I think they made a mistake. If somebody is able to intimidate out of releasing a satirical movie. Imagine what they start doing when they see a documentary that they don't like. Strong words from the president. We are hearing from the Sony CEO overnight defending his decision. Hear from him in just a moment. But begin with Pierre Thomas in Washington. And Pierre, the north Koreans are responding this morning. Good morning to you. Reporter: Good morning, Paula. Overnight north Korean officials denied hacking Sony. Calling the accusations absurd. But the FBI says flatly, they did it. The president was blunt. Accusing North Korea of the devastating cyber attack against Sony pictures. They caused a lot of damage. We will respond. We will respond proportionally and in a place and time and manner that we choose. Reporter: The extraordinary response coming after FBI investigators pieced together a trail of clues. Including Ip addresses apparently linked to Pyongyang. And codes used by north Korean hackers in the past, and a striking similarity between this attack and south Korean attacks on banks and cell phones last year. North Korea intended to inflict significant harm on a U.S. Business and suppress the American right to express themselves. It was stunning, rendering thousands of Sony computers inoperable. We need to be more. And part of that means using every tool in the government arsenal to increase the costs of that type of behavior until it stops. Hello, North Korea. Reporter: The unprecedented attack all because the north Koreans were angry about a movie depicting the assassination of their leader. Take him out. Reporter: Friday the hackers took a victory lap, sending Sony a new message. Praising the country's very wise decision to halt the movie's showing, but threatening mayhem if it's released, distributed or leaked in any form. Whatever option the U.S. Chooses, they are likely to respond. It feels far from over. Sure does. Thank you so much. And Sony is in damage control mode. The CEO defending the decision to pull "The interview" from theaters after hackers threatened violence. And Tom llamas is here with that side of the story. Reporter: Good morning. President Obama now involved in the Sony hack scandal, saying there will be repercussions. But criticizing Sony for backing down, this as the CEOs said their hands were tide, and they intend to district the film. You want us to kill the leader of North Korea? Yes. What? Reporter: Sony's CEO says they will release "The interview," just not in theaters. Sony, in the middle of a crippling and humiliating cyber attack says actors and president Obama says they have cave D. We have not caved. We have not backed down. Reporter: The comments made in an interview with Fareed zakaria followed the president in a nationally-televised news conference. Yes, I think they made a mistake. Reporter: Saying they should have never surrendered their freedom of speech rights. Don't get into a pattern in which you're intimidated by these kinds of criminal attacks. Reporter: But Sony says the president and other critics are all wrong. And George Clooney, himself a victim of the attack telling that no studio head would join him in standing up for Sony. George is seeing the big picture. This is oning with not all. This is not only the great rights we saver, but an entry. Reporter: And the president said that the U.S. Will respond to the north Korean attack, but did not offer details. And sources tell ABC news the inspiration for "Scandal" is now advising Sony on how to deal with the problem. How could Sony release the film at this point? They could release it through on demand service. But no on demand service contacted them. But they are going to release the film in some form. Certainly has created quite a bit of intrigue with the movie. Absolutely.

This transcript has been automatically generated and may not be 100% accurate.

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