The horror movie landscape is undergoing a massive shift as non-traditional creators, specifically YouTubers, drive record-breaking box office numbers. Films like Backrooms and Obsession have emerged as the year’s biggest success stories, proving that digital-first creators can successfully transition to major theatrical releases. Obsession has grossed over $166 million globally, while A24’s Backrooms has earned upwards of $140 million.
How are YouTube creators dominating the horror box office?
The success of Backrooms and Obsession marks a turning point for how Hollywood identifies new talent. Instead of traditional film school pipelines, studios are looking toward creators who have already built massive, dedicated audiences on digital platforms.
A24 tapped Kane Parsons to adapt his own intellectual property for Backrooms. The film, based on a 20-plus episode YouTube creepypasta set in abandoned, acid-yellow liminal spaces, has already surpassed $140 million at the box office. This demonstrates the immense value of existing digital IP that carries a built-in fanbase.
Similarly, Curry Barker wrote and directed the possession film Obsession on a modest budget of $750,000. The project’s trajectory was meteoric; Focus Features acquired the film for $15 million following last year’s TIFF. Since then, the film has climbed to a global box office total of more than $166 million.
The ROI on Obsession is staggering. After being acquired for $15 million, the film has returned over ten times that amount at the global box office.
What does the Blumhouse and Atomic Monster merger mean for the industry?
The ability to scale these “new kind of movies” is being bolstered by major industry consolidations. Jason Blum, who backed Obsession, and James Wan, a producer on Backrooms, represent the leadership of two powerhouse entities that merged in 2024: Blumhouse and Atomic Monster.
The companies began discussing a merger in 2022, eventually forming a single organization with two distinct labels. This merger combines Blum’s history with hits like Paranormal Activity and Wan’s success with The Conjuring series. By pooling resources, the combined entity is better positioned to identify and support the next wave of non-traditional filmmakers.
According to discussions on IndieWire’s “Screen Talk,” these leaders see the current era as reminiscent of the 1970s, when young filmmakers were first breaking into the horror genre. The success of these recent hits suggests that the barrier between online content creation and major studio production is effectively dissolving.
What are the upcoming trends in horror and filmmaking technology?
The industry is not just changing who makes movies, but also how they are made and what franchises are revived. Several major projects are currently in development that signal where the genre is headed.
The Return of Viral Horror Franchises
Blumhouse is preparing to lean into the history of viral horror with an upcoming reboot of The Blair Witch Project, the film widely credited as the first viral horror sensation. Meanwhile, James Wan is reportedly returning to the Saw franchise, marking his first involvement with the series since he wrote and directed the original 2004 film.
AI and Storyboarding
Technological integration is also moving into the pre-production phase. Martin Scorsese has recently explored the use of generative services to assist in his creative process. For his upcoming film, What Happens at Night, Scorsese has employed Black Forest Labs to develop storyboards, signaling a growing acceptance of AI tools in high-level filmmaking.
Keep a close eye on “liminal space” aesthetics and “creepypasta” IP. The massive success of Backrooms suggests that conceptual, high-concept horror with deep digital roots is currently the most profitable niche in the market.
Frequently Asked Questions
Who directed the movie Backrooms?
Backrooms was directed by YouTuber Kane Parsons.
What was the budget for Obsession?
Curry Barker directed Obsession for an initial budget of $750,000.
Which companies merged in 2024?
Blumhouse and Atomic Monster merged to form a single company with two labels.
Is James Wan returning to the Saw franchise?
Yes, James Wan has discussed returning to the Saw movies for the first time since the original 2004 film.
What do you think about the rise of YouTuber-directors in Hollywood? Are these digital-first creators the future of the genre? Let us know in the comments below or subscribe to our newsletter for more industry insights.
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