How did 'Paranormal Activity' scare up $100 million at the box office?

A need for fear factored in the success of "Paranormal Activity."
Photo: Paramount Pictures

Here's one Hollywood story that is destined to be studied and replicated for a good long while by industry executives as it inspires future auteurs: "Paranormal Activity."

By now, audiences are aware of its legend.  The indie film made for $15,000 that caught the attention of studio big wigs like Steven Spielberg, who at one point contemplated remaking the movie himself.  Instead, test audiences were so provoked by the simple scare concept of the film, the releasing studio, Paramount Pictures, decided to keep the film as is.  Channeling the spirit of the legendary B-movie horror marketer William Castle (pictured right), a groundbreaking internet campaign using popular social networking sites is implemented at selected college towns. All people had to do was "demand" to see the scariest film they'll ever see, one the shouldn't view alone.

As word spread, the "Paranormal Activity" midnight screening program caught national attention and the rest became box office history.  It is now a true phenomenon that has earned $100 million dollars. All this happened after expanding into a national run are mere five weeks ago. Oren Peli's "Paranormal Activity" is now the top grossing R-Rated thriller of the last 10 years.  Here's how Paramount Pictures accounts for the success of what can be viewed as the studio's biggest hit this year in terms of budget vs. box office.

"What is truly amazing about 'Paranormal Activity' is the depth of commitment from fans who demanded to see it," said Paramount Pictures Chairman and Chief Executive Officer Brad Grey. "Adam Goodman, our head of production, believed in the film and championed it from the very first screening. This box-office milestone is also a testament to Oren Peli's considerable talents as a filmmaker. All of us at Paramount are proud to have been involved with his revolutionary project."

Hits like "Paranormal Activity" are the equivalent of catching lightning in a bottle. Comparisons to "The Blair Witch Project" aside, it certainly proves the idea that anyone can make compelling entertainment without excess. Have camera and shoot a good story, people will come. 

Are you listening, Michael Bay? 

If you have witnessed "Paranormal Activity, why do you think it's become such a monster hit? Sound off now.

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The Today Show interviewed "PA" stars Katie Featherston and Michah Sloat on the success of the film.