Film Fund-amentals: The Horror, the Horror

As the weekend success of the new Friday the 13th has demonstrated, you seemingly can’t go wrong with a horror film. Well, sort of.

Despite its $45.2 million dollar take at the box office, the film will redoubtably drop like a rock from here on out. That is the destiny of any modern horror movie. The audience for these films is actually pretty marginal and the potential is normally depleted after the first few days. Yet there is a method to the madness — as long as it follows some basic rules:

  • Keep the budget as tight as possible to $15 million dollars (even closer to $10 million would be best). Nobody goes to these movies for plush production values, so forget about it. The new Friday the 13th strictly adhered to this rule. With a budget of $20 million dollars, My Bloody Valentine in 3-D broke this fundamental law and went belly up faster than a horny teenager at Camp Crystal Lake. Granted, the budget difference is marginal. But everything in this genre is about narrow margins.
  • Stick to the known brands. There are nearly two dozen more horror films coming down the pipeline, most of which are remakes of movies from the 1980s. Friday the 13th and Nightmare on Elm Street are the genre’s version of Pepsi and Coca-Cola. The original My Bloody Valentine wasn’t even close to being an RC Cola. Name brand recognition is supreme.
  • Forget 3-D. Nobody goes to these flicks for the technical gimmicks. They go to these movies to see young people (and the occasional oldster bit player) get massacred in an R-rated but gory manner. It’s all about sexual anxiety and taboo violations. Everything else is immaterial.
  • Don’t worry about the opening weekend. The first-run life span of a horror film is roughly three weeks. The real money is then made with the DVD release, which will normally double (at a minimum) whatever was made at the box office. That is why My Bloody Valentine in 3-D will still make a profit despite its lackluster performance (barely $48 million first-run). Much like the porno trade, more people prefer to watch extreme violence in the privacy of their homes.
  • Last but not least, don’t get too hung up on cinematic value. Most of these movies are incredibly stupid and artistically dead, but most attempts to expand beyond this (e.g. Wolfen and Mimic) have commercially failed. Most successes have struck to the basic formula that was neatly broken down and spoofed by Wes Craven in the Scream series (a must-see study guide to the genre).

Of the many horror films coming out this year, only one might succeed in breaking the artistic dead end of the form. I doubt if Zone of the Dead will travel far in first-run. But a Serbian horror film that promises to be a mix of Night of the Living Dead and Assault on Precinct 13 (the original, not the crappy remake) located within the aftermath of the recent Balkan Wars promises to be the first major cult movie of the twenty-first century. Too bad the midnight movie circuit is basically a zone of the dead.

– Dennis Toth

This entry was posted in Film Finance. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.
Dennis Toth

2 Comments

  1. Anonymous
    Posted February 17, 2009 at 10:58 pm | Permalink

    What’s your take on the Suspense/Thriller genre compared to Horror at the box office?

  2. creditspectrum
    Posted February 18, 2009 at 2:06 pm | Permalink

    On behalf of Dennis Toth –
    Actually, I will be dealing with the thriller genre in a later piece. The issues are some what similar, but the variations are greater. By in large, the horror genre operates within very well defined parameters. The thriller comes at a wider range of budget possibilities, such as a low cost production like Run, Lola, Run or a total elephant like Quantum of Solace. By comparison, the average horror film is a pretty modest piece.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

  • Press Releases

  • FEATURED CONTENT

    R&R Consulting in DealBook: A Would-Be Ratings Agency Without Rose-Colored Glasses BY WILLIAM ALDEN

    Available by request: ABSTRAK valuations of primeX indices.

    PIT Ratings Portfolio rankings of >100,000 structured securities.
  • Recent Film Fund-amentals Posts

  • Recent Credit Spectrum Posts

  • R&R Research

    Joint Obligations in Consumer ABS: Mathematics of counterparty credit risk measurement. Thomas Adams, guest author.
  • Categories




  • Cybernetic

  • CreditSpectrum Archives

show
 
close
Follow on Twitter facebook