Paramount to spend $1 million a year on microbudget films

The recent success of Paranormal Activity, which was made for $15,000 and has a current box office taking of $107 million, has promoted a new way of thinking at Paramount. According to Variety they are hoping recreate this type of financial success by spending $1 million anually on microbudget films.

Seeking to replicate the stunning success of “Paranormal Activity,” Paramount’s launching an initiative that will spend $1 million annually to develop and produce microbudget films.

Move, unveiled Thursday, is designed to place between 10 and 20 projects in development by the end of next year, with no individual budget topping $100,000.

Goodman indicated the funds, which will come out of the studio’s overall production budget, will be targeted at both unknowns and established filmmakers, with the goal of increasing the studio’s ability to find new voices and ideas. In addition, the initiative’s aimed at giving Paramount a more diverse portfolio of titles at a time when Hollywood’s devoting most of its resources to megabudget pics, such as Par’s “Transformers” and “Star Trek” franchises.

The studio hasn’t set a target of how many projects would receive a theatrical release. The microbudget projects could also conceivably be remade with conventional budgets.

This is a smart move be Paramount. Not only will it give small filmmakers a chance to shine, it could also produce some very creative films. There is also the fact that they could make a bucket load of money if they produce more hits like ‘Paranormal Activity’ ever now and again.