A film’s success is often measured by comparing its revenue to its production budget. By this metric, 2007’s Paranormal Activity stands as the most profitable film ever.
Produced on a modest budget of just $15,000, this horror phenomenon has earned an impressive Rs16,000 crore (or $194 million) at the box office since its release. The sleeper hit’s success has outshined major blockbusters like Titanic, Avatar, and Avengers.
Directed by Oren Peli, the film features only two Screen Actors Guild-affiliated actors, Katie Featherston and Micah Sloat, who were paid $500 each as they were just starting out in their careers. Both actors attended an audition they found on LACasting and later shared in an interview on The Jay Leno Show in 2009 that they received residuals from the film’s profits after its theatrical release.
Oren Peli filmed Paranormal Activity on a home camera without a formal script, relying heavily on improvised scenes. To keep costs low, Peli used practical effects for the horror sequences. After its debut at several film festivals, the movie impressed viewers and distributors, leading Paramount Pictures to buy the film and invest $200,000 into post-production and marketing.
Released in September 2009, Paranormal Activity quickly became a global sensation, earning a total of $194.2 million worldwide. Its fresh approach, raw footage, and suspenseful storyline captivated audiences, making it a record-breaking hit.
With a profit margin around 130,000 times its original budget, Paranormal Activity is the most profitable film in history. The film’s success spurred three sequels and two spinoffs, collectively grossing over $600 million worldwide.
