Global Catastrophe: Microsoft Bug Disrupts Theatres Worldwide, Leading to Revenue Loss and Operational Challenges

A widespread Microsoft glitch has caused significant disruption to theatres globally, impacting their box office operations and leading to substantial revenue loss.

The glitch, which affected IT systems worldwide, has caused major disruptions to the box office services of numerous theatres. This morning, theatres across multiple countries experienced difficulties with their ticketing systems, resulting in a halt to sales both online and in person.

While some theatres have managed to partially restore their services, many continue to struggle with the fallout. One theatre representative reported: “We are pleased to say that ticket sales are now back up and running on our website. However, we are still unable to process ticket sales through our phone lines or in person due to the global mass IT outage. Please bear with us as we work to resolve the issue.”

The disruption was caused by a software update issued by cybersecurity firm Crowdstrike across the Microsoft Windows network. Crowdstrike has since apologized and confirmed that the issue has been resolved.

Theatres are not the only organizations affected by the glitch. Hospitals, airlines, and schools are also among those experiencing significant operational disruptions.

Largest IT Outage in History

A widespread Crowdstrike outage hit the nation’s supermarkets, banks, telecommunications companies, and other businesses on Friday afternoon. The worldwide cyber crash, described as “the largest IT outage in history,” brought down computer systems across Australia and parts of the world, crippling airport check-ins, supermarkets, and emergency information services.

The outage struck just after 3 PM on Friday, triggering delays at airports around the country and the world, hampering internet banking systems, and forcing laptops across the globe to suddenly shut down. Cybersecurity expert and founder of the ASafaWeb security analysis firm Troy Hunt said it was “the largest IT outage in history.”

“This is basically what we were all worried about with Y2K, except it’s actually happened this time,” he said. The federal government called a snap meeting of emergency authorities, and executives from Telstra, Optus, Coles, Woolworths, Qantas, and Virgin on Friday night to respond to the unfolding chaos.

Prime Minister Anthony Albanese said he understood Australians were “concerned about the outage that is unfolding globally and affecting a wide range of services.” “My government is working closely with the National Cyber Security Coordinator,” he said. “There is no impact to critical infrastructure, government services, or triple-zero services at this stage.”

NSW Police confirmed triple zero was working, but that police information distribution services had been impacted. Victoria Police said they were able to receive and dispatch calls from triple zero, but some internal systems had been affected by the national outage.

Jetstar was forced to cancel all its flights in Australia and New Zealand on Friday night, impacting thousands of customers about to fly out for the weekend. The airline said early Saturday morning their IT systems are “beginning to stabilise, and flights on Saturday 20 July are currently planned to operate as scheduled.”

Overseas, the global crash forced American Airlines, United, and Delta to ask the Federal Aviation Administration for a ground stop on all flights just after 5 PM AEST. In India, airlines were forced to issue handwritten boarding passes. In Europe, Berlin Airport cancelled all flights, while Heathrow suspended all flights to the United States. Travellers out of London’s biggest airport reported being unable to buy food as payment systems went offline.

The scenes were mirrored across Woolworths and Coles supermarkets in Australia as payment services failed and terminals shut down. The outage was caused by a fault in the “Falcon sensor” used by US-based cybersecurity provider Crowdstrike. The sensor is installed on many business computers to gather security data. The fault had a major impact on Microsoft systems worldwide.

Late on Friday, Crowdstrike CEO George Kurtz apologized for the software update that caused chaos around the globe. “We’re deeply sorry for the impact that we’ve caused to customers, to travellers, to anyone affected by this,” Kurtz told the Today Show in the US. Kurtz said Crowdstrike has identified the bug and remediated the issue. “Now we are working with each and every customer, to make sure that we can bring them back online,” he said. “This is not a security incident or cyberattack. The issue has been identified, isolated, and a fix has been deployed. We refer customers to the support portal for the latest updates and will continue to provide complete and continuous updates on our website.”

Home Affairs Minister Clare O’Neil said Crowdstrike had attended the federal government’s emergency meeting and had issued a fix for companies to reboot their systems. “The company has informed us that most issues should be resolved through the fix they have provided, but given the size and nature of this incident it may take some time to resolve,” she said.

Transport, Payment Services Impacted

In NSW, trains were cancelled on the Hunter Line between Newcastle and Dungog for safety reasons. “Passengers are advised to delay their trips and make alternative travel arrangements,” a NSW transport spokesperson said. “There are no impacts to other modes of public transport and no impacts to the wider Sydney Trains network.”

In Victoria, payment services failed on trams in Melbourne, one of many transaction systems that collapsed, including at Woolworths and Coles. ANZ’s internet banking also reported an “industry-wide issue” affecting the processing of some payments, but traditional transfers via BSB and bank account numbers are not impacted. The Commonwealth Bank said its PayID services were unavailable.

Australia’s largest telecommunications provider, Telstra, said some of its systems had been impacted by the outage. “The issue is causing some holdups for some of our customers, and we thank them for their patience,” Telstra said. “There is no impact to our fixed or mobile network which continue to operate.”

No Evidence to Suggest a Hack

National Cyber Security Coordinator Michelle McGuinness said there was no evidence to suggest the mass outage was a hack or cybersecurity incident. “I am aware of a large-scale technical outage affecting a number of companies and services across Australia this afternoon,” McGuinness said in a statement on X. “There is no information to suggest it is a cybersecurity incident. We continue to engage across key stakeholders.”

Richard Buckland, a professor in cybercrime at the School of Computer Science and Engineering UNSW, said the crash was a worst-case scenario. “This is more serious than a cyberattack, really, because it shows our systems aren’t even proofed against randomness,” he told the ABC.

Airports Impacted by Incident

“A global technical outage has impacted some airline operations and terminal services,” an airport spokesperson said. “Flights are currently arriving and departing; however, there may be some delays throughout the evening. We have activated our contingency plans with our airline partners and deployed additional staff to our terminals to assist passengers.”

Just after 9 PM, Jetstar announced it had cancelled all its flights in Australia and New Zealand until 2 AM on Saturday. “Our teams are working on recovery options and we will contact customers with updates as soon as our systems are back online,” a spokesperson said. Jetstar said customers due to travel on Friday or Saturday could rebook or refund their flight. Virgin Australia grounded its flights at 5 PM but resumed boarding an hour later. “Virgin Australia operations are continuing following a large-scale IT outage impacting multiple airlines and other businesses; however, some cancellations and delays are expected,” a spokesperson said.

AFL fans were locked out of Marvel Stadium on Friday night an hour before kick-off. TAB was also forced to suspend all betting services. The outage caused upheaval in the media industry, impacting newspapers, radio, and TV around the world. Britain’s Sky News, one of the country’s major television news channels, was forced off air. Autocues failed in TV newsrooms across Australia, forcing presenters to improvise for hours. Triple J radio hosts had to rely on CDs and USB sticks to play music to listeners as their systems went down.

Impact on Australian Venues

The global Microsoft glitch has had a profound impact on Australian venues, manifesting in several key areas:

1. Revenue Loss:
   • Ticket Sales Disruption: The inability to process online and in-person ticket sales during peak hours has led to immediate revenue losses. Many patrons have been unable to purchase tickets, resulting in decreased sales.
   • Refunds and Cancellations: Theatres may face increased refund requests and cancellations due to the inability to provide tickets, leading to further financial strain.
2. Operational Challenges:
   • System Downtime: The outage has caused significant downtime for ticketing and box office systems, disrupting the usual flow of business and creating administrative headaches.
   • Customer Service Overload: With systems down, customer service teams are likely overwhelmed with inquiries and complaints from frustrated patrons, leading to increased workloads and potential reputational damage.
3. Event Disruptions:
   • Performance Delays or Cancellations: Some events may be delayed or even canceled due to the logistical challenges of managing ticketing and seating without proper IT support.
   • Access Issues: Patrons may face difficulties accessing events without their digital tickets or e-tickets, leading to confusion and dissatisfaction.
4. Long-term Financial Impact:
   • Loss of Trust: Continued disruptions can erode patron trust in the reliability of the venues’ services, potentially affecting future ticket sales and patron loyalty.
   • Compensation Costs: Venues may need to offer compensation, such as discounts or free tickets, to appease affected customers, further impacting their financial stability.
5. Operational Adjustments:
   • Manual Processes: Staff may need to revert to manual processes for ticketing and seating arrangements, which can be time-consuming and prone to errors.
   • Increased Security Measures: Following the disruption caused by a cybersecurity firm’s software update, venues might need to implement additional security measures

Photo Credit: DepositPhotos.com