Low Budgets --> High Profits (1/5-1/9)

     Most producers and directors tend to strive for the lowest possible spending price on their films or productions, but James Blum (owner and founder of the most lucrative horror production companies, Blumhouse Productions) reigns with the title of "supreme penny-pincher."
     In his method of madness, Blum focuses his approach on two central million-saving concepts. The first is that actors, directors, and Blum himself all are paid zero (union-mandated minimums) in exchange for dividends of the total profit. Secondly, locations are specifically chosen in accordance to their costs. Sets are made from scratch and every picture strives to be locally shot in Los Angeles in about 20 to 25 days. How can production companies get away with all of this corner-cutting? Summers states that, "Audiences don’t seem to care. Horror is a forgiving genre with a history of shoestring-budget classics." Actors and movie extras are flocking to be casted in Blum's productions because the risk of return is constantly increasing for the better. For example, Ethan Hawke earned $2 million for playing in The Purge, which is double the usual amount of compensation for the same role.
    Although many of his company's productions are, not all those released are quite as successful as blockbusters such as the Paranormal Activity series. Blum admits, "My pitch to directors is , 'I can't guarantee you a hit movie, but I can guarantee you that the movie is going to be yours," stressing the importance of recognition and ownership in the horror film industry.

Through being extremely frugal and consistent in his production methods, Blum has ensured his company's micro budget success. I believe it is extremely smart of Blum to incorporate his thrifty ways into his technique because he is possibly the most profitable movie producer in Hollywood (and who says your audience has to know about such large savings?)

Summers, N. (2014, April 14). Jason Blum, the Penny-Pinching Horror Movie Maestro. Retrieved January

     8, 2015, from www.businessweek.com website: http://www.businessweek.com/articles/2014-04-24/

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