With the summer movie season winding down, many of the heavy hitters have already hit theaters. While such movies like Beauty and the Beast ($504 Million), Wonder Woman ($396 Million), and Guardians of the Galaxy Vol 2 ($387 Million) have been making serious bank, these films also had massive budgets for film production and marketing costs. Sure, they’re making a large amount of money through box office receipts and merchandising, but they don’t have the biggest Return on Investment (ROI) for their massive budgets. Turns out the most successful film of 2017 so far did not involve talking silverware, Amazonians, or superhero raccoons, but instead were small budget horror films.
Blumhouse is a small horror production company that has consistently been cranking out hits over and over. Why? Because they notoriously have small budgets to make movies that put butts in seats, and thus have been able to make substantial profits for their films. Get Out, this year’s surprise sleeper directed by funnyman Jordan Peele featured Daniel Kaluuya, Allison Williams, and Bradley Whitford, and analyzed race in the horror genre. Get Out had a budget of $4.5 million and managed to gross more than $252 million worldwide, making it a 630 per cent ROI for the movie.
Blumhouse’s other hit movie, Split directed by M. Night Shyamalan and starring James McAvoy and Anya Taylor-Joy, also had similar success The split personality horror movie had a budget of $4.5 million and grossed more than $250 million worldwide giving the studio a 610 per cent ROI.
While other business models gross higher box office receipts, and take into account things like merchandising, Get Out and Split use the model specific to Blumhouse, and receive critical praise as well as a strong word of mouth response from moviegoers, which equals repeat viewings for the movies. As a result, Blumhouse doesn’t seem to be going into the red anytime soon.
Source: The Wrap