Financial Times FT.com

Hollywood braced for budget cuts

By Matthew Garrahan in Los Angeles

Published: October 6 2009 19:34 | Last updated: October 6 2009 19:34

After a summer bursting with expensive box office flops, a film made for a paltry $15,000 and starring an unknown cast is shaping up to become one of the year’s surprise successes.

Paranormal Activity, a horror film in the mould of the Blair Witch Project, has been selling out midnight screenings in a handful of US cities and looks set to become a bona fide hit when it is released across the US by Paramount this month.

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