film 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood  

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The Jason Blum business model, as put to use with his production company Blumhouse, has not only taken Hollywood by surprise, it’s giving studios a run for their money (literally). But how does Blumhouse work? How is it possible to create films that look so good but cost so little? Well, Jason Blum will be the first to tell you to cut out indulgent nonsense like exquisitely catered meals, trailers, overpriced cast and crew, and big flashy effects, all of which are unnecessary if you’ve got a good story and talented director and cast.

Having a great concept and strong script means your project has a solid skeleton. From there, cut out the fat and focus on the meat of the story and muscle of production so you can make an inexpensive, but very good, film. Jason Blum and company have perfected this process, and spun masterful webs of horror throughout Blumhouse Production's history. This list discusses some of the reasons Blumhouse is the smartest production company in Hollywood.

Jason Blum’s Business Model Is Equal Parts Simplistic And Genius


Jason Blum’s Business Model Is... is listed (or ranked) 1 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/Paramount Pictures

Blumhouse specializes in low and micro budget horror films. According to director Couper Samuelson, the Blumhouse model is, “closer to the auteurist model than the old Hollywood model.” The company produces high-concept and writer- and director-driven films at very low cost, allowing for minimal risk and maximum profits.

This all started with Paranormal Activity, which was made for just $15,000 and grossed about $200 million worldwide, earning it the title of “most profitable film in Hollywood history.” In 2013, The Purge grossed $34.1 million in the first weekend alone, after being produced for only $3 million.  

Blumhouse Makes Genre Movies That Aren't Junk


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Photo: Blumhouse/Lions Gate

Jason Blum spent 15 years working for Bob and Harvey Weinstein, the men behind Miramax, the Weinstein Company, various hotly contested Oscar campaigns, and many other things. He worked in acquisitions at Miramax, where he dealt with prestige pictures and populist entertainment alike. You may not know Miramax owns Dimension Films, which made Scream. Such division of labor - horror movies over here, critical favorites over there - is common in the film industry. Hollywood likes very small boxes, and the contents of those boxes hardly ever mix. 

Though Miramax had some big hits with prestige films (Shakespeare in Love grossed almost $300 million worldwide), there were also cases of struggling to get dramas to catch on with a mass audience. At some point, it occurred to Blum to combine the genre appeal of Dimension projects with the sophistication and creativity of Miramax's prestige project, and thus was born Blumhouse, which takes things from each of Hollywood's little boxes and mixes them together. 

It Knows How To Flesh Out A Film Franchise And Likes To Keep Key Creative Minds Involved


It Knows How To Flesh Out A Fi... is listed (or ranked) 3 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/Universal

When's the last time you heard someone say “I loved the first Purge film but the rest sucked.” Probably never, right? With just about every other horror franchise, fans have been saying some permutation of this sentence since the very first sequel (Friday the 13th Part V, anyone?). What you do hear a lot of is, “I love the Purge movies.” That’s right, movies. As in, all of them. That’s a huge accomplishment.

When a production company has a box office success, it’s only natural to want to cash in by pumping out prequels and sequels until the concept dies and everyone hates it. The great thing about Blumhouse is, the company takes the time to develop good stories, allows the creative voices behind original installment to develop franchise concepts, and ensures a sequel is a good film, not just a cash grab. James DeMonaco, for instance, wrote and directed all three Purge films, which is extremely rare in a horror franchise. 

It Only Works With Those Who Love What They Do And Want To Be Doing It


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Photo: Universal Pictures

One of the many benefits of cutting a film’s budget to the bare essentials is you know those who show up to work everyday believe in the project and love what they’re doing. No one works for the money; they’re taking creative risks and pay cuts because they’re having fun and they enjoy the challenge of operating within tight financial constraints.

In a piece on The Visit, M. Night Shyamalan's return to form after a string of disasters, Jason Blum is quoted as saying 

“If you take away all the bells and whistles, it forces the director to focus on what I think are the best ingredients for a great movie: performance, character, story. When you lower the budget, you really push the director to challenge him or herself more. I always think that benefits movies.”

The Visit was made for $5 million and grossed $98 million worldwide. The working relationship between Shyamalan and Blumhouse was good, and the company produced his next film, Split. Made for $9 million, it grossed $275 million worldwide. 

Its Distribution Methods Essentially Nullify Any Potential For Financial Loss


Its Distribution Methods Essen... is listed (or ranked) 5 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/Universal

Blumhouse had a great rapport with Universal, having partnered on projects since 2011. In 2014, Blumhouse signed a 10-year first-look deal with Universal. The deal may also extend into television, with Blumhouse looking at micro-budget horror series for NBC (the company is NBCUniversal). 

If Universal likes a Blumhouse project, it will distribute it, spending more than the film's budget on marketing and releasing the picture on 3,000 some odd screens. If Universal doesn't see theatrical potential, films see VOD releases and overseas deals. So either way, Blumhouse gets films distributed and productions costs recuperated. 

It Embraces New Markets And Marketing Strategies


It Embraces New Markets And Ma... is listed (or ranked) 6 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/FilmDistrict

Blumhouse may be a house of horror above all else, but the company doesn’t limit itself to a single genre or platform. It branched into publishing with Blumhouse Books and, in August 2016, announced the launch of independent television platform CryptTV, which is also backed by Eli Roth. Meanwhile, Blumhouse.com has great blogs on all things horror, as well as a podcast. 

It Does Not Indulge Divas And Has An Egalitarian Approach To Creativity


It Does Not Indulge Divas And ... is listed (or ranked) 7 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/Sony Pictures

While big names have graced Blumhouse films, marquee casting isn't a necessary component of the company's oeuvre. "We don't need stars for our movies," Jason Blum insists. No one sees Blumhouse films for stars; rather, audiences love the concepts. If stars do sign on, they get paid union minimum. For lead actors, scale is $2,921 a week. Oh, and Blumhouse does not provide trailers for anyone. If you don’t bring your own, you go without. If a film makes money, Blumhouse takes care of the major cast and crew on the backend, divvying up 12.5 percent of the first-dollar gross among them.

It Secures Top Writers By Giving Them The Freedom To Write


It Secures Top Writers By Givi... is listed (or ranked) 8 on the list 11 Reasons Why Blumhouse Is The Smartest Production Company In Hollywood
Photo: Blumhouse/Universal

Jason Blum makes a very important promise to screenwriters who work with him, a promise studios and other production companies won’t make - he assures them his team won't rework scripts. He trusts his writers to do what they do best: write.