Hollywood is notoriously conservative in its approach to film-making. Paranormal Activity has been phenomenally successful, so copying this formula for future should prove just as successful … right?
Paranormal Activity was produced for approximately $15,000 and has grossed over $100 million to-date. There is no question that the film has been an astronomical hit, regardless of peoples’ opinion of the artistic merit of the film itself.
Paramount Pictures is building a production division that will spend no more than $2 million annually on movies budgeted at less than $100,000. The division does not plan to acquire completed movies at film festivals and markets. Paramount production chief Adam Goodman has been reported meeting with Beverly Hills leading talent agents and discussing the logistics of the division.
Some productions will serve as a showcase of a director’s artistic talent and flair, which will be capitalized upon in a future project. A few films may merit a bigger-budget remake, whilst the crème de la crème will secure theatrical release.
Paranormal Activity was strategically released at a handful of midnight screenings in order to gauge audience interest and Paramount intends to do the same with future projects.
Unfortunately, Paramount is not the first major studio to launch such a division. Twentieth Century Fox and Universal Studios also opened such divisions and then closed or offloaded them.
So, what’s next for Paramount? The studio is developing a sequel to Paranormal Activity and has recently bought Oren Peli’s (director of Paranormal) next movie, Area 51 for approximately $7.5 million.
Please refer to my previous article on Paranormal Activity: http://entertainmentagentblog.com/2009/11/02/viral-marketing-the-rebirth-of-the-low-budget-movie/
Gene Goodsell owns his own entertainment management firm and also an entertainment law firm. He has numerous US and Australian clients. Gene has a business degree, law degree with honours and is currently studying for his Master of Laws in entertainment. He is a member of the Law Society of New South Wales, the Beverly Hills Bar Association (non-attorney member) and Independent Film Financing Alliance.