The phenomenon that was ‘The Blair Witch Project’ is a rarity Hollywood has been dying to replicate since the Little Indie That Could’s 1999 release, when it scared up a staggering $140 million — from a budget of $60,000.
Well, the next ‘Blair Witch’ may have arrived. (Let’s all just pretend the abominable ‘Book of Shadows: Blair Witch 2′ never existed.)
The suddenly super-buzzed-about horror flick ‘Paranormal Activity’ was made for a mere $11,000 over the course of seven days — and is now being called "the scariest movie of the decade." The film follows a young couple (Katie Featherston and Micah Sloat) who, convinced they’re being haunted by spirits, set up a video camera to monitor their bedroom over the course of 20 nights.
After sinking into my seat for the better part of its 99 minute-runtime at a midnight screening earlier this morning, I’m inclined to agree. No other film this millennium has proved so shockingly chilling (‘The Descent’ comes closest) — or packed the kind of lingering effects to leave you shaken and utterly terrified of your own home.
Adam Goodman, president of production at Paramount — who scooped the film up after its 2008 debut at the Slamdance Film Festival — stopped by last night’s screening, the first in New York, to introduce it. Goodman recalled how 35 people had walked out of an early test screening; exit interviews with those folks revealed it wasn’t because they weren’t enjoying the film. It was because they were too scared.
Goodman also admitted that DreamWorks, formerly a leg of Paramount co-headed by Steven Spielberg, had swooped in and pocketed ‘Paranormal Activity’ with every intention of leaving it on the shelf and remaking it with a big budget and marquee stars. Then they wised up.

Is ‘Paranormal Activity’ the Next ‘Blair Witch Project’? – Inside Movies