OK, Hollywood Learns A Scary Lesson From 'Paranormal Activity'

from the sequels-are-never-bad dept

A few weeks back, I noted that the low-budget (but highly-profitable) Paranormal Activity movie might teach Paramount a thing or two about how the business of making movies could succeed without spending millions on big stars and overly-expensive sets. However, it doesn’t look like that was the lesson learned here. Paramount’s CEO Philippe Dauman was recently interviewed about the success of the movie and talked about plans to make a sequel that he said would require the right marketing to ensure a benefit to Paramount. There’s also the following insight into Dauman’s strategy:

Asked by an analyst if the “Paranormal” model of a low-cost, high-box office film could be easily replicated with other releases, he said no, pointing to how much time passed between similar surprise hit “The Blair Witch Project” and “Paranormal.”

So apparently, the decade that passed between Blair Witch and Paranormal makes for some kind of justification that low-budget movies can’t be made profitably at will. Um. But couldn’t that decade also be interpreted to mean that a studio should want to try more low-budget productions, more frequently? I can certainly understand that Paramount might not want to adopt a “throw everything at the wall to see what sticks” kind of business model for its movies. However, the existence of two huge box office hits that were produced for a pittance sounds more like proof that such a business model could work — not a “lightning sometimes strikes twice” argument against making low-cost movies. But on the other hand, looking at the returns from the $15 million sequel Book of Shadows: Blair Witch 2, that release grossed almost $48 million worldwide… and there’s talk of another sequel for Blair Witch on the way. The scary ending to this story appears to be an endless cycle of horror movie sequels.

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Comments on “OK, Hollywood Learns A Scary Lesson From 'Paranormal Activity'”

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48 Comments
PaulT (profile) says:

Blair Witch was a great movie but overexposed. A lot of people who saw it didn’t like it, so they had no taste for a sequel. When the sequel came out, it was frankly inferior and only attracted a subset of those who liked the original. That’s what will probably happen with Paranormal 2 if it happens.

But, the time between BW and PA is of course irrelevant. There have been numerous movies where the plan to remake have gone through at great expense (mainly from foreign movies, such as the fantastic [REC] being remade into the OK Quarantine). It’s also relatively rare for a studio to pick up a low budget independent movie and give it the wide exposure that PA received. Maybe if they stopped trying to second-guess what the public wants (e.g. by spending $100 million on a remake of a TV series that nobody remembers – Land Of The Lost) and actually concentrated on quality, there won’t be a decade between each success story.

Anonymous Coward says:

While I didn’t go to see the movie, I have to disagree about the nobody remembers part. I have great memories of watching land of the lost. Unfortunately, the nearest theater that had it was almost an hour away, and I simply wasn’t willing to drive that far for a mediocre experience in a theater staffed by high school kids who really couldn’t care less about my experience.

And while I grew up in a large metro area, and am fully aware that an hour away may not be all that far for some people, I currently live in a rural area and an hour away is in excess of 50 miles.

PaulT (profile) says:

Re: Re:

Well, maybe I did insert a little bit of hyperbole. I certainly don’t remember the TV show (I don’t think it even aired in my country), and the movie was a massive flop. It was just an example of executive thinking they know what people want – spending over $100 million in the process – rather than daring to buy independent productions and properly distribute them for a fraction of the cost.

nasch (profile) says:

Re: Re:

Unfortunately, the nearest theater that had it was almost an hour away, and I simply wasn’t willing to drive that far for a mediocre experience in a theater staffed by high school kids who really couldn’t care less about my experience.

But you would be willing to drive a short distance (and pay for tickets) for a mediocre experience in a theater staffed by high school kids who really couldn’t care less about your experience??

Anonymous Coward says:

Certain types of movies lend themselves to the whole “shaky hand held camera” thing, and horror movies happen to be one of those things.

For those of you not in Canada, you maybe want to look a the TV series “Trailer Park Boys”, entirely shot documentary / hand held style. Cheap to produce, funny as heck, barely scripted (ad libbed like mad) and a big hit.

However, other types of movies don’t translate well in handheld. Some of them just make you seasick to watch the movie with the constant camera movement, and are less than enjoyable. Horror movies are a rare gendre that really support this type of action.

Drew (profile) says:

BLAIR WITCH 2

Actually I think the “Blair Witch” sequel was FAR superior to the original. They should NOT have referenced “The Blair Witch” in it, (they could have used a different reason in the story line for the folks to be in he woods) and sold it on its own merits. I think the market that originally went to see it were the idiots who liked “The Blair Witch Project” and were hoping for more of the same tripe, and then were disappointed that it did not deliver the same crap they were used to… The people that would have liked it didn’t go to see it because they figured it would be the same drivel and nonsense as featured in “The Blair Witch Project”… Marketing is not complicated, you’ve got to understand that people have different tastes, and don’t sell them “chicken” when you have a “beef” product by claiming it “tastes like chicken”. idiots…

Haywood says:

Frankly I'd rather this didn't catch on

I like the big budget flicks, 1 million on special effects would seem like a reasonable minimum. I don’t watch horror movies, I would rather not have that crap in my head. On the other hand I don’t mind watching people blown up and shot to pieces, in line with the plot. This isn’t to say you can’t have entertaining low budget films, other than paying the cast, Phone Booth couldn’t have cost much to make, yet it was fairly good. BTW, I’ve watched every episode of Trailer Park Boys, and found it addictive.

Haywood says:

Re: Re: Frankly I'd rather this didn't catch on

USA, and no they don’t force anyone to go to the movies at all, (but I’m sure they would like to force such a law).
Where my childish whining is directed is; like reality TV taking over the air waves & pushing out nearly any intelligent content, so could the budget film push out its more costly to make counterpart. While that might be no problem for you, some might lament its passing.

PaulT (profile) says:

Re: Re: Re: Frankly I'd rather this didn't catch on

…except that ain’t going to happen.

Low budget movies and big-budget blockbusters are going to continue for a long, long time. It’s just that the studios always concentrate on pushing movies costing $100-200 million, often in front of cameras before the script is polished, and ignore the potential of low budget hits. The point is that it’s simply hard to feel sympathy for an industry that regularly blows obscene amounts of money on low quality product.

Oh, and what does the budget matter when it comes to quality entertainment? Every single genre from horror (Paranormal Activity) to comedy (Napoleon Dynamite) to sci-fi (Primer) can and has been made for very low budgets and reaped massive rewards – and those are just the “micro budget” movies. Most movies not dependent on special effects can be produced comfortably for $40 million or less.

No matter the genre you happen to enjoy, both types of movie are out there. Nobody’s forcing you to watch the genres you don’t like – and they never will. I’ll keep my horror, you can keep your CGI wankfests. Just stop bitching about a type of movie you don’t want to see – nobody will force you to.

caine says:

I didn’t bother to read the whole article about the studio head because he will never admit he was wrong. But I do seem to recall many low budget movies doing very well on a regular basis. Just off the top of my head, The Usual Suspects (1995), which won two Oscars. Slingblade (1996) did well and won an Oscar. The Boondock Saints (1999) big cult hit. My Big Fat Greek Wedding (2002). I’m sure I’m missing plenty. Now these may have not have been “as” cheap to make as PA, but they were significantly less than a regular Hollywood movie. So his two examples of BW (1999) and PA (2009) being rare occurrences only illustrates the typical studios short memory.

Anonymous Coward says:

Re: Re:

I think theyre talking about different things. The folks responsible for paranormal activity are talking about, quite understandably, amounts of moneys that individuals can rustle up and whether theres a chance for them to break into the big leagues with it. We’re thinking of the distorted, ridiculous budgets of spidermans and land of the lost and waterworld and how ridiculous that seems to us when we’re probably all a little more discriminating than the average movie viewer and wish those budgets couldve been spent on 10 movies instead of 1, though we sort of still like the super explosive immersion that their budgets can buy.

Even a $1 Mln movie like slingblade is a bit out of reach of starving artists. $1 Mln doesnt buy you many special effects, but it does buy you production quality, which means anything cheaper than that is going to look like a TV show or a horror movie.

Hollywood knows it can make money off of cheaper films and it makes plenty of them. But it doesn’t really want to get into this game of making lots of cheap stuff “see what sticks to the wall” because that just isn’t its nature. Maybe thats got to do with inertia and unions, but as an outsider in a different creative energy, I can tell you it might have a lot to do with a notion of artistry and a vision for the field of creative endeavour which can’t tolerate too much democratization and has no interest in low production values.

Eponymous Coward, AKA Doug (profile) says:

I could throw a football a quarter mile

Horror isn’t the only genre that can make a low budget smash. Napoleon Dynamite cost about $400K to make, and it made a buttload of money. I fondly remember a lot of quiet hits, and the common denominator has always been solid story telling. Hollywood, she don’t get that, and will pander to the teens who spend their allowance on the latest effects-driven pile of crap that Access Hollywood told them to see.

bshock (profile) says:

somehow this sounds familiar

This clueless exec’s babbling reminds me a bit of an anecdote I once heard from science fiction author Barry B. Longyear (who wrote the novella “Enemy Mine”).

Years ago Longyear wrote a novel that his publisher printed in a relatively small run, perhaps only 10,000 copies. (I probably have the number wrong.) Longyear kept watch on the sales of his book, and was pleased to see that it sold out in a short time. But when he called his publisher to mention that all 10,000 copies had sold, the publisher’s response was, “Well, it’s a good thing we didn’t print any more than 10,000 copies.”

To which Longyear replied something like, “Huh?”

“Sure,” explained the publisher. “If the book sold only 10,000 copies, it’s a good thing we didn’t print any more than 10,000 copies.”

Dark Helmet (profile) says:

Are you crazy?

“a studio should want to try more low-budget productions, more frequently?”

Okay, you’re not thinking this through. Logically, low-budget movies mean either less work for superstar actors and actresses or contracts that afford them less income. With a trend such as you’re suggesting, Brad Pitt and Angelina Jolie stand to make far less money. And then what will become of their planned Bradgelina Xmas Football Spectacular?

What? You’re not familiar with the Bradgelina Xmas Football Spectacular? Well, the idea is to adopt enough dark skinned children that they can field a full football team. Then, once the adopted children have gone through several two-a-days practices, learning how to grow a beard from Bradley and how to use one’s lips to cushion a fall from Angie, the kids will be trotted out against the Oakland Raiders on Xmas day for a little full contact football to see who wins (my money is on Brad and Angie’s adoptees, better known as the Los Angelas Ego Bombs of Aneheim, Hollywood, and Tiajuana).

And you want to take away their ability to field their team by limiting their income? You will NOT deny me my Xmas entertainment, Michael!

Marc says:

Barriers to entry

If the studios don’t keep costs to $200M or so then anyone can make a film. That’s not good.

The 6 majors have too much invested in maintaining “release windows” of a bygone era.

It’s all about control…must have control of preciousssss.

Hopefully they’ll die soon so we can get back to a vibrant innovative film industry.

Jennifer (user link) says:

Another movie that is coming out that offers a clean alternative is ‘’Paranormal.’’ Below is some additional information about this new thriller!!

Paranormal, the latest supernatural thriller from Cross Shadow Productions, (the
creators of the Dove.org approved, best-selling BMG releases: Pray and Pray 2:
The Woods) will be available in stores nationwide January 26th 2010. The 2009 Mrs. America is starring in it.

See more information and trailers at:
http://www.ParanormalTheMovie.com

Following the success of family-friendly suspense/thriller The Exorcism of Emily
Rose (Sony Pictures), comes a riveting supernatural thriller in the vein of the hit
SyFy television series, Ghost Hunters and Frank Peretti’s House (Roadside
Attractions / Lionsgate).

Paranormal follows best-selling, self-made novelist Greg Evans struggling through the worst case of writer’s block in his award-winning career. In a desperate search for
inspiration, Greg quickly finds himself immersed in a world he is not prepared to face.
Turning to a group of paranormal investigators, Greg and the ghost hunting team search for proof and answers, yet are unaware they are about to have an experience of a
lifetime! None will leave the way they came. Paranormal will peel back the supernatural curtain to reveal how The TRUTH will EXPOSE the darkness!

Jennifer (profile) says:

Another movie that is coming out that offers a clean alternative is ‘’Paranormal.’’ Below is some additional information about this new thriller!!

Paranormal, the latest supernatural thriller from Cross Shadow Productions, (the
creators of the Dove.org approved, best-selling BMG releases: Pray and Pray 2:
The Woods) will be available in stores nationwide January 26th 2010. The 2009 Mrs. America is starring in it.

See more information and trailers at:
http://www.ParanormalTheMovie.com

Following the success of family-friendly suspense/thriller The Exorcism of Emily
Rose (Sony Pictures), comes a riveting supernatural thriller in the vein of the hit
SyFy television series, Ghost Hunters and Frank Peretti’s House (Roadside
Attractions / Lionsgate).

Paranormal follows best-selling, self-made novelist Greg Evans struggling through the worst case of writer’s block in his award-winning career. In a desperate search for
inspiration, Greg quickly finds himself immersed in a world he is not prepared to face.
Turning to a group of paranormal investigators, Greg and the ghost hunting team search for proof and answers, yet are unaware they are about to have an experience of a
lifetime! None will leave the way they came. Paranormal will peel back the supernatural curtain to reveal how The TRUTH will EXPOSE the darkness!

TheStupidOne says:

Why Not

Adopt the throw everything at the wall and see what sticks motto?

I can see no reason not to do it. Paramount should pair up with independent film makers and finance 50% of their budget with absolutely no oversight. In return Paramount would get some percentage of the profits and the right to release it in the theaters as a Paramount film if they wish.

If they can spend $10,000,000 on a whole bunch of movies and one of them becomes a box-office hit they will be much better off and there will probably be lots of new, good, ‘independent’ films made thanks to them. Obviously they should apply some discretion to who they give money to, but please hollywood, don’t just make blockbusters.

Anonymous Coward says:

Re: Why Not

They don’t even have to do that. Releasing companies appear to be allow more and more small budget movies to get a small run in region theaters, which in turn allows them to spot movies that are selling and ones that are not. Those that do well can then be shopped up the ladder, or directly given wider release. It costs little to do it this way, and then you aren’t invested in the thousands of really crappy movies that are made each year independently.

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