Horror Insidious the years most profitable film

For years,studios have tried in fits and starts to make genre movies at a nominal cost. But its been a challenge.

They say lightning doesnt strike twice. Dont tell that to the trio behind Paranormal Activity,whose microbudgeted haunted-house follow-up Insidious is crossing the $50 million mark globally and could double that by the time it leave theatres. That would give the indie horror picture,made for under $1.5 million,the best cost-to-gross ratio of the year,a good measurement of profitability.

Insidious has taken in $44.5 million in North America after four weekends,and roughly $4.5 million in Russia and two smaller territories (final figures are still being determined). It opens in the U.K. and Brazil this weekend. Based on its performance so far,those involved with the film say Insidious should reach $90 million globally,and probably more. The key players who backed the film Jason Blum,Oren Peli and Steven Schneider stand to make millions. While it wont make the $193 million grossed by Paranormal globally in 2009,no one is complaining.

It shows that there is still a market for quality genre movies,and that it is possible to make film on a micro-budget, Blum said.

For years,studios have tried in fits and starts to make genre movies at a nominal cost. But its been a challenge. Paramounts microbudget division Insurge Pictures had great success earlier this year with Justin Bieber: Never Say Never,which cost $13 million to produce and has grossed $95 million worldwide. Paramount formed Insurge after the runaway success of Paranormal Activity,which the studio distributed domestically.

Blum,Peli and Schneider produced Insidious via their Haunted Movies banner,which has a five-picture financing deal with Canadian distributor Alliance. Sony picked up all U.S. rights at the Toronto Film Festival last year for under $1 million,and in turn gave the film to its fledgling distribution partner FilmDistrict.

Directed by James Wan and written by Leigh Whannell,both Saw veterans,Insidious stars Patrick Wilson and Rose Byrne as a couple who move into an old house with their two young sons and a new baby. The producers were able to keep the production budget down by convincing the talent to take deferred payments. Critics liked the film,and word-of-mouth among audiences has ensured that weekend business has never dropped more than 30 per cent. By contrast,the $40 million-budgeted Scream 4 plunged 62 per cent in its second weekend,and will be lucky to crack $50 million.