I can’t remember the last time I went to a haunted house, but if someone asked, I’d jump at the chance. Getting spooked and hearing the reaction of others getting scared never gets…old. Which is exactly what the horror business is counting on.
Scary Money
Horror is one of the most profitable and reliable genres of entertainment. Low production costs, relative to other genres, result in products that are straightforward and easy to market. The fan base is loyal and always up for trying something new. The format is limitless: think film, merchandise, publishing, and even live experiences. All of which adds up to the potential for a massive return when something hits.
Take Resident Evil. It’s a video game, a TV show and a film. It’s considered the highest-grossing horror franchise of all time, bringing in $13 billion. Think you know where the money was made? You’re probably wrong. The game made $9.5 billion.
So creators keep trying because fans keep paying. To the scream of a multibillion-dollar industry.
This isn’t about the success of Backrooms and Obsession this year. Each was made by a young person who got their start on YouTube. Together the films grossed more than $1 billion. Nuts? Yes. Obsession cost $750K to make, sold for about $14 million and made $520M at the box office. No math is required to calculate that it’s a hell of a return.
These films capitalized on a proven industry: Horror has always been big business. And when life is uncomfortable, the horror business truly booms.
Books are another significant source of spending for fans. Sales of horror books are expected to be 26% higher this year vs last, Nielsen predicts. Take Frankenstein. About 40,000 copies are still purchased each year. That’s a number any writer would swoon over selling in their lifetime. It’s why Chanthal Harris opened Long Dark House in Alexandria, Va. No romance. The bookstore is devoted exclusively to horror and the supernatural.
This year Americans will spend a record $13.5 billion on Halloween, according to the National Retail Federation. Our wallets will shell out $300 million to $500 million just for experiences that scare us.
So why do we keep paying to be scared?