The Economics Of Horror Films

One of the great things about Horror films is that they are incredibly cheap to make compared to other box office releases. For example Paranormal Activity, the production costs of this was only $15,000 dollars and it generated $190 million at the global box office which was a huge profit. Compared to the pirates of the Caribbean which had a budget of $378.5 million which is even more than what Paranormal activity had as their budget but also their profit of the film. It made $1,045,713,802 in the box office which is a huge profit however it shows how cheap it is to make a good horror film compared to an action film which couldn't have a budget as low as $15,000 dollars as it wouldn't be good.

However there a some factors that hold Horror Films back from not being able to have high budgets and make huge profits. One huge limitations of the genre is that there is a limited appeal as the genre doesn't have a huge audience due to not being able to appeal to family audiences but also not a lot of people enjoy horrors so they wouldn't want to go watch it in the cinema as they could watch a romantic instead.

In addition, another thing that holds back the Horror Genre that it isn't considered as being "artistic" which means that a Horror film is very unlike to win any Oscars no matter how good it is.

Finally, by horror films being so cheap to make it means I don't have to invest millions into making a good short film but easily make a good short film by using less than £10 as the more realistic the film is the more scary.