World’s most profitable film

In 2007, filmmaker Oren Peli decided to make a low-budget horror film using home cameras and an all-new cast. He used a handheld camera to reduce costs and cast SAG-affiliated actors at minimum wage. There was no actual script, and much of the film was improvised. Practical effects were used for horror scenes. The end result was Paranormal Activity, which was produced on a shoestring budget of $15,000. After impressing audiences at film festivals, Paramount Pictures purchased the film, investing $200,000 for post-production and marketing.

Paranormal Activity was released in theaters in September 2009 and was a massive hit, grossing a record $194.2 million worldwide. The film’s found-footage format, funky cuts, and freshness enthralled fans. The 1300000% profit the film made over its production budget remains a record that is almost impossible to break. The success of Paranormal Activity spawned a franchise, consisting of three sequels and two spinoffs, which collectively grossed over $600 million worldwide.

Why did the stars of Paranormal Activity earn so much?

Due to budget constraints, Oren Peli cast two newcomers in the film. Katie Fetherston and Micah Slott were both struggling actors with no real work to show at the time. He saw the casting call on LACasting and auditioned. Peli eventually hired them at minimum wage, and they eventually earned $500 for each job they did. During a guest appearance on The Jay Leno Show in November 2009, the actors said that they earned the remaining income from the film’s profits after it was released in theaters two years later and did good business.