Over the weekend , a hacker known as TheDarkOverlord resurfaced and released the first episode of season five for `` Orange is the New Black '' a popular show on Netflix that is n't slated to air until June . A short time later , TheDarkOverlord released episodes 2 though 10 , along with a warning to other Hollywood studios – you 're next . The media jumped on the story . Netflix would n't confirm or deny the leaked Attack.Databreach episodes were legitimate , stating that proper law enforcement had been notified , and that a company used by several TV studios `` had its security compromised . '' The company in question , Larson Studios , does audio post-production work for a number of shows and films , including NCIS Los Angeles , Designated Survivor , and Arrested Development . According to Larson Studios , they 've done work for FOX , Netflix , ABC , NBC , IFC , Showtime , and more . As word of Netflix 's security problem started to spread , news outlets starting comparing the incident to the Sony Pictures hack and the medical hacks over the last few years . While there are some comparisons to be made , they 're not the same type of threat . Netflix did n't have a Ransomware incident , and neither did Larson Studios . Their files were stolen Attack.Databreach , not encrypted . Ransomware encrypts the files on a computer and renders them useless . Victims can recover the files if they pay a fee (ransom) Attack.Ransom , or they can try and recover the files from backups . According to TheDarkOverlord , Larson Studios was targeted because they were a post-production company . Late last year , TheDarkOverlord hacked Attack.Databreach Larson Studios and downloaded Attack.Databreach an unknown number of files . Plenty of reporters knew TheDarkOverlord had targeted Hollywood , but until this weekend there was never any proof . Fast forward a few months . When Larson Studios did n't comply with the extortion demands Attack.Ransom , TheDarkOverlord turned their attention to Netflix . When Netflix refused to pay Attack.Ransom , season five ( minus three episodes ) of `` Orange is the New Black '' was released for download . `` It did n't have to be this way , Netflix . You 're going to lose a lot more money in all of this than what our modest offer was . We 're quite ashamed to breathe the same air as you . We figured a pragmatic business such as yourselves would see and understand the benefits of cooperating with a reasonable and merciful entity like ourselves , '' TheDarkOverlord wrote in a statement . Netflix surpassed $ 2.5 billion in quarterly streaming revenue in Q1 2017 , and added five million members to their subscriber base . While having one of their popular series leaked Attack.Databreach to the web is n't exactly helpful , it is n't clear if there will be any financial impact from this incident . Once again , extortion and Ransomware are two separate things . Netflix and Larson Studios are (were) being extorted Attack.Ransom , they were not infected with Ransomware and have complete access Attack.Databreach to their files . However , there is a lesson to be learned . Third-parties are always going to pose a risk to any organization , and this is certainly the case in Hollywood where secrecy and suspense are key to their business model .