Paranormal Activity 3:Trailer for the latest in the ultra-cheap, mega-profitable series...

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By now you’ll either by a PA fan or you won’t. But if you were wondering just why the series was able to reach a third film in just 3 calendar years (yes it’s always money) then a quick look at the table below will answer that question. Even when you consider the hidden costs of marketing and distribution there’s a massive profit margin on these films. Found footage films tend to be very cheap to make so can reach a profit much earlier / ‘easier’ than other films. When they reach the level of success that the Paranormal Activity films have seen so far, then there’s a long way to go before it becomes unprofitable to produce sequels. Churning a film out every year eventually did for the Saw films; so is it better to leave a little space between the films or best to get as many in as possible out as quickly as you can?

Paranormal profit margins match...

Film		Year	North American Gross	International Gross	Worldwide	Budget
1	Paranormal Activity	2009	$107,918,810	$85,436,990	$193,355,800	$15,000
2	Paranormal Activity 2	2010	$84,752,907	$92,759,125	$177,512,032	$3m

[REC]3 Genesis trailer. The horror continues...

Found footage...

Film		Year	North American Gross	International Gross	Worldwide	Budget
1	The Blair Witch Project	1999	$140,539,099	$108,100,000	$248,639,099	$60,000
2	Paranormal Activity	2009	$107,918,810	$85,436,990	$193,355,800	$15,000
3	Paranormal Activity 2	2010	$84,752,907	$92,759,125	$177,512,032	$3m
4	Cloverfield	2008	$80,048,433	$90,715,593	$170,764,026	$25m
5	The Last Exorcism	2010	$41,034,350	$26,703,740	$67,738,090	$1.8m
6	Quarantine**	2010	$31,691,811	$9,628,095	$41,319,906	$12m
7	[Rec]	2007	$0	$32,492,948	$32,492,948
8	Apollo 18*	2011	$17,409,312	$5,715,241	$23,124,553	$5m
9	[Rec] 2	2009	$27,766	$18,469,680	$18,497,446

*Still in release around the world. **Quarantine is an American remake of the Spanish Horror film [Rec] (number 7 on this list)