Paranormal Activity Success Story: The Profit Behind Limited-Location Horror Films and the Filmmakers Who Follow the Formula

Bubble Pictures Studio
6 min readJun 9, 2024

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Welcome to the final article in our series on one-location movies, marking the conclusion of chapter one in our exploration.

Paranormal Activity (2007)

“Paranormal Activity” is an American supernatural horror film by Oren Peli, known for its realistic found footage style and low-budget production. It follows a young couple, Katie and Micah, who experience disturbing events in their home, captured on a handheld camera. Made for about $15,000 and shot in Peli’s house, the film premiered at festivals before getting a wider release in 2009. It became a sleeper hit, grossing over $193 million worldwide, and received positive reviews for its tension and innovative approach. Its success spawned a franchise and significantly influenced the horror genre, highlighting the potential of low-budget filmmaking.

After the success of “Paranormal Activity,” Jason Blum founded Blumhouse Productions, pioneering a new era of horror filmmaking. Utilizing a low-budget, high-concept approach, Blumhouse focused on creating commercially successful films with limited resources. They implemented a unique business model, allowing filmmakers creative freedom within tight budget constraints while prioritizing high-concept, marketable ideas. Through strategic marketing and effective use of social media, Blumhouse effectively tapped into audience demand, establishing themselves as a powerhouse in the film industry and reshaping the landscape of modern horror cinema. Producing over 200 movies, with theatrical grosses of almost $6 billion in global box office.

Another key aspect of Blumhouse’s success is their partnership with established filmmakers and creators. For example, they teamed up with James Wan and Leigh Whannell, the creators of the “Saw” franchise, to produce “Insidious” and “The Conjuring” series. These collaborations allowed Blumhouse to tap into the creative talents of experienced horror filmmakers while maintaining their cost-effective approach.

Blumhouse’s success has extended beyond traditional film production. They’ve expanded into television with shows like “The Purge” and “Into the Dark,” offering audiences a steady stream of horror content across multiple platforms.

In addition to their commercial success, Blumhouse has garnered critical acclaim, earning nominations and awards from prestigious institutions like the Academy Awards, Golden Globes, BAFTA Film Award, and Gotham Independent Film Award. Their ability to blend commercial viability with artistic integrity has made them a powerhouse in the entertainment industry.

Jason Blum’s Blumhouse Productions has greatly benefited from their strategic partnerships and business models, which combine the best of indie filmmaking with the power of major Hollywood studio distribution.

Blumhouse Productions and Universal Partnership

Indie Filmmaking with Studio Distribution

Partnering with Universal Pictures allows Blumhouse to capitalize on its extensive distribution network and marketing resources, ensuring broad audience reach and maximizing box office potential. Universal’s robust support in promoting and distributing Blumhouse films has been instrumental in their success. Beyond theatrical releases, Blumhouse benefits from Universal’s expertise in home entertainment, streaming, and international markets, driving additional revenue streams.

James Wan’s Atomic Monster Productions and New Line Cinema Partnership

(New Line Cinema is a subsidiary of Warner Bros)

Atomic Monster’s first-look deal with New Line Cinema guarantees the studio priority in financing and distributing their films, providing a level of security and resources typically unavailable to independent filmmakers. This partnership empowers Atomic Monster to focus on developing innovative projects with the backing of a major studio. Under James Wan’s leadership, Atomic Monster enjoys creative freedom to craft unique and compelling horror content, perfectly aligned with New Line Cinema’s commitment to diverse and captivating films.

This collaboration benefits both parties: New Line Cinema gains from Wan’s renowned reputation and expertise in the horror genre, ensuring a consistent flow of high-quality content that resonates with global horror fans. Meanwhile, Atomic Monster can explore new creative territories knowing they have the support and reach of a major studio behind them.

Jason Blum’s Blumhouse and James Wan’s Atomic Monster have recently finalized a merger that is set to create a powerhouse in the horror genre. This collaboration is strategic for both companies, enabling them to leverage each other’s strengths and resources while maintaining their unique brand identities.

The merger between Blumhouse and Atomic Monster means that they can now share infrastructure and resources, further enhancing their capability to produce high-quality horror films. This collaboration is expected to expand their output and introduce new projects that combine their expertise and innovative storytelling. The merger is a strategic move that aims to solidify their dominance in the horror genre, combining the creative and business acumen of both Jason Blum and James Wan to push the boundaries of horror filmmaking.
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Yahoo)​​ (SYFY Official Site)​ (TheWrap)​.

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As Blumhouse and Atomic Monster pave a new horizon for filmmaking, including standout limited-location movies, the collaboration between these film companies serves as an inspiration for indie filmmakers to explore the universe of low-budget films. Although they don’t exclusively make one-location movies, they have achieved financial success with films made in one or limited locations...

In the past two decades, we’ve witnessed a surge of indie filmmakers venturing into this genre, crafting captivating stories within limited spaces. Almost 300 single-location films have been produced since 2000.

To conclude this article, here are some notable indie one-location movies whose creators have successfully followed the formula of this genre:

“Buried” (2010) — Directed by Rodrigo Cortés, this thriller starring Ryan Reynolds takes place entirely inside a coffin, showcasing the intense, claustrophobic potential of one-location storytelling.

“Silent House” (2010) — Directed by Gustavo Hernández, this horror thriller uses a real-time format within one house to create a continuous sense of dread and immersion.

“Locke” (2013) — Directed by Steven Knight, this film features Tom Hardy as the sole character driving a car for the entire duration of the movie, proving that compelling drama can unfold in the most confined spaces.

“Coherence” (2013) — Directed by James Ward Byrkit, this sci-fi thriller is set during a dinner party in a single house, demonstrating how a tight setting can amplify suspense and intrigue.

“The Invitation” (2015) — Directed by Karyn Kusama, this psychological horror film takes place at a dinner party, using its single location to build tension and deliver unexpected twists.

“10 Cloverfield Lane” (2016) — Directed by Dan Trachtenberg, this suspenseful thriller is set in an underground bunker, highlighting how one-location settings can drive intense character dynamics and mystery.

“A Dark Song” (2016) — Directed by Liam Gavin, this supernatural horror film unfolds almost entirely within a remote house, using the confined setting to heighten the psychological tension.

“Under the Shadow” (2016) — Directed by Babak Anvari, this horror film set in a Tehran apartment during the Iran-Iraq War combines social commentary with supernatural elements, all within a limited setting.

“A Ghost Story” (2017) — Directed by David Lowery, this contemplative drama explores themes of time and existence, primarily within a single house, proving the versatility of the one-location formula.

“The Party” (2017) — Directed by Sally Potter, this dark comedy is set during a single evening in a house, using the confined setting to explore interpersonal conflicts and revelations.

“Failure” (2023) — This recent addition to the one-location genre continues the tradition of innovative storytelling within confined spaces, highlighting the ongoing relevance and potential of this approach.

Successful one-location movies thrive on a strong concept, engaging characters, and tension-driven storytelling. They make the most of limited space, maintaining momentum with unexpected twists and emotional depth. Resourceful filmmaking and strong dialogue drive the narrative forward, while cinematic visuals keep the audience engaged.

This formula is not exclusively dedicated to horror, although it often excels in that genre due to the inherent tension and intimacy a confined setting can provide. The effectiveness of one-location films in other genres, as demonstrated by “Locke” and “A Ghost Story,” underscores the versatility and creative potential of this filmmaking approach.

I will delve deeper into this fascinating topic in my upcoming book on
one-location movies, where I’ll uncover more secrets behind these films, share stories of low-budget hits, and explore how filmmakers tackle the unique challenges of this genre. Stay tuned!
Kiana Firouz and Bubble Pictures Studio

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