A Winning Genre
By this point, social distancing protocols have been dropped across most of the globe. But as former moviegoers are becoming streamer-goers, the North America box office is still down 34% compared to the pre-pandemic period.
However, in their chase of the streaming giants, it looks like Hollywood might have finally found a secret weapon worthy of a classic movie monster: horror films.
Killing the Box Office
Over the past year, horror films have succeeded again and again with films like Smile, The Black Phone, and Barbarian all doing incredibly well at the box office, particularly in comparison to their production budgets.
Smile notched an impressive $22.6 million opening weekend, which helped it immediately recoup its $17 million budget. The film went on to generate $18.5 million more during its second weekend.
Having multiple successful weekends like this is exceedingly rare in the industry. Even the biggest blockbuster movies typically experience a significant decline in sales after the opening weekend.
Smile went on to gross nearly $200 million globally in just one month. Not bad at all for a horror film with a modest budget.
Horror is turning into a huge winner for a few reasons.
To start, the experience of being frightened in a theater is different than when alone at home — and can’t be recaptured on a tablet, phone, or television screen. What might be an isolated or even unpleasant experience streamed on a laptop in your room instead becomes collective and cathartic when shared in the comforting presence of other horror fans, and with a big bag of popcorn in your lap.
Additionally, horror movies are typically very low budget. From the studio’s perspective, producing horror movies can be a low-risk way to potentially earn a 20-30X return on their investment.
Although Halloween is technically over, 2022’s successful horror movies could transform the spooky season into a year-round event — for moviegoers and streaming services alike.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.