PARANORMAL ACTIVITY

Made on a budget of $15,000?

It's not a misprint ... and it's closing in on a world-wide gross of a 1/2 BILLION dollars.

Previously studios turned up their noses at low buget movies considered to be '3rd Tier.' Major studios were interested in 1st Tier budgets of $50 million and above (usually way above) or more modest 2nd Tier budgets. However now, many of those same studios are now scrambling for scripts with budgets under $200,000.

Paramount Pictures, which bought distribution rights to 'Paranormal Activity' for about $350,000, and launched a new division dedicated to movies budgeting under $100,000." (Los Angeles Times, January 21, 2010)  http://www.latimes.com/entertainment/news/la-et-midnight21-2010jan21,0,3672418.story

How was 'Paranormal' able to be made for $15,000?  The cast was only 4 actors, only one location, a house donated at no cost; and everybody worked for free with the hopes of sharing future profits. Sony picked up the film and put in an additional $35,000 in editing costs, and then the major cost of advertizing.

It's not the norm. A low budget film with 30 actors and several locations - and with cast and crew getting some pay could normally be completed around $400,000. The film, 'The Devil Inside' was made in Romania for $800,000, but grossed $23 million - in its first weekend.

Consider the financial power of the Horror genre in a comparison with the total US Domestic Theatre gross for the year's Academy Award for Best Picture, The Hurt Locker:

The Hurt Locker managed a relatively paltry $15.7 million. " (from BoxOfficeMojo)  Compare The Hurt Locker total gross of $15 million to Paranormal Activity's total gross of $141,541,385. (this gross is for ONLY US Theatres - NO Foreign sales, DVD, Television, etc.) 

Paranormal Activity, however is NOT an isolated example as can be viewed from the following link: http://www.boxofficemojo.com/genres/chart/?id=supernaturalhorror.htm

Again, Paranormal Activity is not the norm, but compare The Hurt Locker to a horror genre film most people have never heard - Gin gwai- (English title - The Eye). The Eye played only 13 US theatres and grossed $512,049, as such, it made little or no money. But the opportunity to make a substantial net profit is in foreign sales. The Academy Award winner The Hurt Locker recently sold to Foreign sales for $11,000,000. The supernatural thriller The Eye grossed $11,652,965 in foreign sales.

Gin gwai, a practically unknown supernatural thriller released by a minor distributor (Palm Distributors) that played in only 13 US cities beats out an Academy Award winner in Foreign sales.

http://www.boxofficemojo.com/movies/?id=eye.htm

Paranormal Activity proved that an independent film can be made successfully - thanks to the changes in the film industry.

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