Once again, genre-focused film investment outperforms the averages. An interesting article from The Wrap called “The Year’s 9 Biggest Payoffs: Insidious: Chapter 2 Tops Tony Stark and Katniss Everdeen” compares the box office results of big-budget studio films with smaller budget genre films.
The article repeats Media Society’s mantra: focusing on specific genres where production costs can be mitigated while targeting a highly specific audience can lead to significant returns.
The best investment of 2013 was Insidious: Chapter 2…the horror film grossed $160 million worldwide from a reported budget of just $5 million. Now you see why every studio wants to birth its own low-budget horror franchise.
While the numbers citied in the article support the proven winning track record of box office performance of low-budget horror films, the article’s author admittedly presents a simplified analysis of the complicated process of determining the film’s ultimate ROI, though the analysis presented gives a clear thumbnail of the potential.