As a genre, horror has always avoided big budgets when compared to other movies that deal with fantasy and sci-fi. A year ago, three standout horror movies led the pack with shoestring budgets. Meanwhile, other genres were plagued by the ‘flopbuster’ – high-budget movies that struggled to make their money back once they hit the box office.

Two children wake up in the middle of the night to find their father is missing, and all the windows and doors in their home have vanished.

A #Shudder Original – SKINAMARINK is now streaming. pic.twitter.com/J7Q5OnpXxo

— Shudder (@Shudder) February 2, 2023

Horror & Streaming

Alongside smaller budgets, horror is also a step ahead of other genres when it comes to streaming integration. When budgets started ballooning in Hollywood, it was Netflix and other streaming services that picked up lower-budget horror. Horror’s smaller, more targeted audience perfectly matched streaming’s unique selling point – on-demand content at home, preferably with the lights turned off.

Now other movies are trying to release via streaming, namely blockbusters from Disney and Apple. Streaming on-demand content has taken off, along with other online entertainment industries like live-streaming, video-sharing, and iGaming websites. All of those examples host streamed content, drawing smaller but dedicated audiences than the latest general appeal summer blockbuster. However, when users search for the best RTP slots online and find a website that suits their interests, that’s a different form of engagement. It’s more specific, allowing niche interests to shine with audiences who enjoy it, because they took the initiative to seek it out in the first place. Compared to other big draws in Hollywood, horror is one of those niche interests that has thrived on streaming. Unlike the latest sci-fi epic, horror projects don’t need larger audience exposure to overcome eye-watering budgets.

This dynamic makes horror a money printer for those who create and distribute it. Horror movies, including originals, can be found on every streaming service and there are even dedicated horror services like Shudder. Meanwhile, some general appeal movies struggled to make profit despite box office and streaming interest, simply due to how expensive they were to make.

Small Budget Horror In 2023

This time last year, two very different horror films debuted to widespread praise – Skinamarink and M3GAN. The first was a slow-burn analog horror, receiving criticism that it was a little too slow. The second was a slasher flick, a Chucky homage that integrated modern anxieties about AI and killer robots. Both were roaring successes in a year filled with troubled box office performances.

Skinamarink was created by YouTuber Kyle Edward Ball. Shudder picked up the project and it quickly entered the zeitgeist after a lot of social media buzz. It was a testament to the importance of atmosphere in horror, where suspense matters more than CGI monsters. The movie’s declared budget was $15,000, and it profited by exactly 140x when it brought in $2.1 million.

M3GAN was the latest movie from Blumhouse Productions, who pioneered the modern low-budget horror moneymaker. Even by Blumhouse’s standards, the movie enjoyed a lot more positive word-of-mouth and social media hype than their other projects. Naturally, it was made for a higher budget of $12 million and left the box office with $181 million.

Then, later in the year, Australian YouTubers Danny and Michael Philippou also made their directorial debut with Talk To Me. It featured a more typical horror premise – supernatural hauntings of an adolescent friend group – and was picked up by A24 for international release. Made from $4.5 million, it brought in $92 million and became A24’s best-performing horror yet.

There’s no shaking it. Watch the trailer for #TalkToMe, the terrifying horror debut from brothers Danny and Michael Philippou (RackaRacka). Only In Theaters July 28. pic.twitter.com/E1vPgjdcik

— A24 (@A24) April 11, 2023

These three examples demonstrate that horror handily sidestepped (or is immune) to the flopbuster effect. In 2023, just one movie with a budget of over $200 million turned a profit while more than ten other projects struggled. In today’s landscape, becoming a flopbuster isn’t necessarily a mark of bad quality. Most of those projects would have profited if they just had a restricted budget. As a genre, horror often isn’t exposed to antagonizing factors like gratuitous CGI use, so the budgets are smaller and easier to profit from.