Blumhouse Productions has gained recognition for its production of horror films. Viewers who have watched popular movies such as “Paranormal Activity,” “The Purge” series, or “Get Out” are familiar with Blumhouse’s work.
However, during the Oct. 18, 2023 Walker Webcast, Founder and CEO Jason Blum opened up about a different topic – the film “Moneyball.” He explained that this movie holds relevance to their business model at Blumhouse and discussed it with Walker & Dunlop Chairman and CEO Willy Walker.
In the film “Moneyball,” Oakland A’s manager Billy Beane focused on statistics rather than flashy athletes to build his team. Similarly, Blumhouse does not prioritize high-budget productions but instead focuses on one genre – low-budget horror films.
This approach means that scripts should have small casts with limited speaking parts and shooting locations. Additionally, directors and actors are paid based on back-end profits rather than upfront fees. As Jason Blum stated during the webcast: “If our project is successful financially everyone benefits; if it fails we don’t make much money.” This concept may be unconventional in mainstream Hollywood but aligns well with Billy Beane’s philosophy in “Moneyball.”
The success of this model is evident through Jason Blums’ achievements at his company.
Origins
Blums shared that when he started his own production company his goal was not specifically geared towards producing low-budget horror films; he simply wanted to create a hit movie after leaving Miramax where he held an executive position . However , making studio movies seemed like the best route for achieving success as independent film distribution channels were more limited .
After producing several independent films which did not perform well commercially , they got an opportunity from Paramount Pictures to produce their first major budget release – “Tooth Fairy”. At around same time they also produced another indie flick called ‘Paranormal Activity’ which turned out to be a major success. This was when Blum had his epiphany.
He realized that it was possible to make independent movies and have them distributed by studios, as Paramount did with “Paranormal Activity.” Due to the low budget nature of these films, more projects could be produced. As Blum stated: “After ‘Paranormal Activity,’ I focused on volume; the key being keeping costs down.”
The independent film process allows directors more creative freedom and room for experimentation . It also enables Blumhouse Productions to collaborate with talented but underrepresented directors such as Jordan Peele (“Get Out”) and John Chu (“Jem and the Holograms”) before they became well-known in Hollywood.
Overall, producing independent films is a more enjoyable experience due to fewer decision-makers involved in the process , according Jason Blums .
Unique Model
When asked if this model can be replicated by other studios or applied across different genres , Walker received an emphatic “no” from Jason Blums .
“Our focus is solely on horror movies. Larger studios cannot operate using this approach alone; that itself makes it difficult for them replicate our model,” he explained . While there may be potential for applying this model in television production where profit-and-loss are closely monitored , streaming services’ upfront payment structure would not align well with back-end payments.
Blums also noted that action films would struggle under their low-budget approach as audiences expect grandiose special effects every time they watch a Marvel movie. He added: “You cannot produce high-quality Marvel-like content on small budgets.”
Although romantic comedies can potentially work within their business strategy, big-name actors often demand higher salaries upfront making it challenging for smaller productions like theirs.
In conclusion,
Jason’s appearance at Walker Webcast provided valuable insights into how his company has achieved success through its unique business model focusing exclusively on producing low-budget horror flicks rather than big-budget blockbusters. This approach has allowed them to work with talented directors and actors while keeping costs low, resulting in a high volume of productions. However, this model may not be applicable or successful for other studios or genres due to various factors such as budget constraints and audience expectations.
