UPDATED 12.10PM: Hollywood studio Sony Pictures has cancelled the Christmas day release of The Interview, a parody film which has angered North Korea and triggered chilling threats from hackers.

It announced the decision after the majority of US theatre chains said they would not screen the film, about a fictional plot to assassinate North Korean dictator Kim Jong-Un.

"In light of the decision by the majority of our (theatre) exhibitors not to show the film The Interview, we have decided not to move forward with the ... theatrical release," it said in a statement on Wednesday.

"We respect and understand our partners' decision and, of course, completely share their paramount interest in the safety of employees and theatre-goers," it added.

Regal, AMC and Carmike theatres were among US chains who had said they would not show the madcap movie.

Already, the stars of the movie, James Franco and Seth Rogen had cancelled all promotional appearances related to the film.

A red-carpet premiere scheduled for this week at New York's Landmark chain's Sunshine Cinema has mow also been cancelled.

In Canada, the Cineplex Entertainment chain had also said it would cancel the Christmas day release.

Skittishness about attending the movie followed threats by the so-called GOP (Guardians of Peace) hacking group, which invoked the September 11, 2001 attacks in an ominous warning to any movie-goers planning to see the film.

In a message written in broken English, the group said a "bitter fate" awaited any who attend the film.

"Soon all the world will see what an awful movie Sony Pictures Entertainment has made. The world will be full of fear," the statement warned.

"Remember the 11th of September 2001. We recommend you to keep yourself distant from the places at that time. (If your house is nearby, you'd better leave.)"

In Washington, the US State Department sought to distance itself from the film, while defending the right to free expression.

"We're not in the business of signing off on the content of movies or things along those lines," said spokeswoman Jen Psaki.

"Entertainers are free to make movies of their choosing, and we are not involved in that."
Actor Rob Lowe, among a number of stars who have small cameo roles in the movie, voiced his surprise on Twitter.

"Wow. Everyone caved. The hackers won. An utter and complete victory for them. Wow," he said.

"Hollywood has done Neville Chamberlain proud today," he added, in reference to the British leader's infamous appeasement of Hitler before World War II.

In addition to the threats, Sony has seen the release of a trove of highly unflattering internal emails, unpublished scripts and other internal communications, including information about salaries, employee health records and other personal information.