166-170

Chapter 166: Selling the Rights

“This agreement has no issues in its content, sir.”

New York, Universal Pictures.

The lawyer representing the Writers Guild for this negotiation nodded toward Allen after carefully reviewing all the details in the contract.

“Well then, here’s to a pleasant partnership, Mr. Meyer.”

With the lawyer’s cue, Allen grinned, extended his hand, and greeted Ron Meyer, the Vice President of Universal Pictures’ Film Distribution Department, with a smile.

“A pleasure doing business, Allen.”

After exchanging a glance with Universal's legal team to confirm there were no mistakes, Ron Meyer also plastered a polite but insincere smile on his face and shook hands firmly with Allen.

After a period of intense back-and-forth negotiations, Universal agreed to pay $4.8 million to acquire the rights to produce a sequel to The Blair Witch Project and its overseas distribution rights. Compared to the $150,000 production budget of the first film, the sequel’s rights price was undeniably steep. However, considering the original movie's $250 million box office earnings, Universal even felt like they were getting a bargain.

Of course, this illusion of profit wouldn’t last past the sequel’s release.

By then, Universal would understand what it means to suffer a massive loss.

---

“When does Universal plan to start production on the sequel to The Blair Witch Project?”

Signing his name on the contract with guidance from his lawyer, Allen casually asked Ron Meyer across from him.

“Since we resumed operations, Universal has been actively looking for a suitable screenwriter to develop the sequel…”

Taking the contract Allen handed over, Ron Meyer signed his name as well and extended another invitation to Allen.

“Are you sure you have no plans to write the sequel yourself, Allen?”

Ideally, a sequel is best written by the original screenwriter, as they are most familiar with the story and can ensure continuity in the plot.

“I’ll pass.”

Shaking his head, Allen declined Meyer’s proposal once again.

He reiterated the reason he’d given before:

“To me, The Blair Witch Project’s story ended with the first film. Besides, my new movie is about to release soon…”

When Allen mentioned his new movie, Ron Meyer’s expression subtly changed.

For most screenwriters, making a low-budget film like Paranormal Activity wouldn’t even register as a concern for Universal. However, when it came to Allen, it was a different story altogether.

Both The Texas Chainsaw Massacre and The Blair Witch Project had emerged as unexpected box office hits despite their limited budgets. If this phenomenon happened once, it could be dismissed as a fluke. But achieving the same result twice suggested something beyond mere luck.

Notably, The Texas Chainsaw Massacre 2 had recently premiered. Despite a slight drop in reviews compared to the first, its box office returns met Universal’s expectations, grossing $60 million in its first week and claiming the top spot in North America’s weekend box office. Even during a slow season, such earnings were enough to energize Universal.

This was precisely why Universal abruptly shifted from dragging out the negotiation over The Blair Witch Project sequel rights to expediting the deal.

They had caught wind that other studios, including Lionsgate, had begun approaching Allen with offers to acquire the sequel rights. Lionsgate, in particular, had expressed interest in paying $4 million for the rights and committing $25 million to marketing and distribution to replicate the success of the first film.

---

“Promotion for Paranormal Activity has officially begun, but there’s been some internal disagreement within Universal over the marketing strategy…”

After signing the contract, the lawyers tactfully left the office, leaving Allen and Ron Meyer alone.

Shifting his gaze back from the departing lawyers, Ron Meyer revealed Universal’s hesitation to Allen.

“Initially, we considered replicating the viral marketing strategy used for The Blair Witch Project, but some believe that such a method won’t work a second time. Audiences won’t fall for the same gimmick again.”

Viral marketing may have been innovative, but it wasn’t easily repeatable. The same trick wouldn’t lure audiences to theaters twice.

At this, Ron Meyer’s expression showed a trace of regret.

If possible, he would have loved for such marketing tactics to remain effective indefinitely. It would save movie studios a lot of trouble.

“While The Blair Witch Project’s strategy may not be repeatable, that doesn’t mean we can’t use similar methods to draw audiences into theaters again.”

If Allen remembered correctly, Paranormal Activity’s marketing wasn’t groundbreaking—it followed the familiar approach of leveraging the “found footage” gimmick and marketing itself as a genuine documentary.

This was evident from the decision to cast relatively unknown actors, which aligned perfectly with the film’s promotional strategy.

“Are you sure?”

Ron Meyer hesitated at Allen’s suggestion.

He remained skeptical that audiences could be fooled twice by the same “found footage” narrative.

Yet history proved otherwise.

Audiences didn’t just fall for the gimmick twice; they would willingly be duped by it many more times in the future.

This was evident from the success of later films employing the same “found footage” format.

---

“In Hollywood, there are thousands of screenwriters. They’re the unsung heroes behind the scenes—you might not know their names, but you’ve undoubtedly seen the movies they’ve written. Personally, I hold screenwriters in the highest regard. I believe they’re the heart and soul of Hollywood. Without them, the industry would be nothing but a stagnant pool.”

BBC Studios, The Late Show taping.

Host David Letterman read aloud a lengthy monologue, then suddenly paused, feigning confusion as he glanced toward the cameras.

“Kate, did you sneak in this line to praise yourself again? Just because you’re the show’s writer doesn’t mean you can shamelessly brag like this.”

After delivering the line, Letterman turned to the live audience with a wry smile and added:

“Actually, she wrote this part too.”

The crowd erupted in laughter as Letterman steered the conversation back to the guest appearing on the show.

---

(End of Chapter)

*Chapter 167: Late-Night Show*

"The next guest is not only a screenwriter but also a director."

"The films he has written and directed have repeatedly turned into Hollywood's box-office dark horses. Yes, repeatedly! And today, he’s here to introduce his latest work. Let’s welcome Allen!"

Amid David Letterman's introduction, the audience erupted in enthusiastic applause.

Allen stepped onto the stage of The Late Show, carried by the warmth of the crowd's clapping.

Previously, Allen had suggested to Ron Meyer that they stick to The Blair Witch Project's promotional strategy. However, Universal had only partially adopted the idea.

While the "found footage" concept had generated plenty of buzz, Universal hedged its bets by organizing several promotional activities, including having the cast appear on reality shows.

As the most prominent member of the Paranormal Activity crew, Allen naturally became the centerpiece of Universal’s publicity campaign.

Even though he wasn’t particularly fond of talk shows, Allen reluctantly agreed to Universal’s request to appear on The Late Show to promote his new film, for the sake of its box office success.

"Allen, how are you doing?"

"I'm doing well."

After a brief exchange of pleasantries, David Letterman smoothly transitioned into interview mode.

"Are you excited about the release of your new film on the big screen, Allen?"

"Just to clarify, David, I didn’t make the movie—I merely stumbled upon some footage."

In response to Letterman’s question, Allen earnestly corrected him.

The audience erupted into laughter once more.

It had only been a year since The Blair Witch Project hit theaters, with a marketing campaign centered around a similar premise of "discovered footage."

Thus, many viewers familiar with The Blair Witch Project’s promotional tactics couldn’t help but chuckle at Allen's answer.

"Well, Allen, you certainly have a knack for finding footage," Letterman quipped, shrugging for emphasis.

"And this footage conveniently ends up on the big screen," he added with a knowingly humorous tone, eliciting another round of laughter from the audience.

Letterman then shifted gears, moving away from discussing the film to focus on Allen’s personal story.

"So, Allen, what made you decide to become a screenwriter?"

"I love storytelling. My mind is always brimming with ideas I want to write down, so I chose screenwriting."

"And the real reason?"

Though Allen’s initial answer was positive and idealistic, Letterman wasn’t satisfied with a polished response. He pressed further.

"Alright, I’ll admit it—for fame and money," Allen said with a shrug, meeting Letterman’s gaze directly.

His candid response drew hearty applause from the audience.

Compared to vague, reserved answers, Allen’s blunt honesty resonated more with the American crowd.

"You’re very honest, Allen," Letterman remarked.

"I’m just sharing my true thoughts," Allen replied with a casual smile.

"I like your honesty. So, are the contents of this footage real?" Letterman asked, seamlessly circling back to the movie.

"Of course," Allen answered without hesitation, maintaining an air of seriousness as he continued to market the film as a "real documentary."

The rest of the interview played out in a similar fashion, with Letterman oscillating between asking about Allen’s daily life and making sudden inquiries about the movie. Each time the topic returned to the film, Allen would respond with deadpan conviction about its "authenticity."

…

"I know him," Agent Zhou said flatly as he watched the talk show playing on the screen in the BSI headquarters in Washington. On-screen, Allen was chatting comfortably with David Letterman.

"I know David Letterman too," Agent Phil remarked, glancing at the screen.

"I meant the one being interviewed."

Turning to his colleague, Agent Zhou clarified, then returned to his characteristic silence.

"Who is he?"

Agent Phil squinted at Allen on the screen, his face showing a hint of confusion.

"In Hollywood, screenwriters don’t usually get much fame," Phil added.

"Allen, a Hollywood celebrity," Amanda interjected as she walked in and caught sight of the familiar face on the screen.

"He was present at the scene of the 'Wolf Girl' incident. Back when I was still a patrol officer, I interrogated him."

"So this celebrity has experienced paranormal events too?" Phil asked, raising an eyebrow in surprise.

"He wasn’t involved in what happened in Devil’s Forest. He just happened to be in the same small town where it all went down," Zhou explained, shaking his head.

Although Zhou had initially suspected a connection between Allen and the Wolf Girl case, the celebrity hadn’t turned up at the sites of subsequent paranormal events, leading Zhou to let go of his suspicions over time.

Hearing this, Phil nodded and shifted his attention away from the screen.

Just then, Spike, who had been quietly watching The Late Show, suddenly stretched and stood up.

"That’s it!"

"That’s what?" Amanda asked, her eyes following Spike’s movements.

"I’ve decided to watch Paranormal Activity this weekend."

Spike drained the last of his tea, looking resolute.

"It’s just a movie. That 'found footage' gimmick is nothing more than a marketing strategy, just like The Blair Witch Project. It’s all fake," Amanda remarked, unimpressed.

"Still, the movie sounds interesting, doesn’t it?" Spike retorted, unfazed by Amanda's skepticism.

"What?! The Blair Witch Project was his work too?" Phil exclaimed, his previous indifference giving way to astonishment as he stared at Allen on the screen.

(End of Chapter)

*Chapter 168: Premiere*

“So many people!?”

Arriving at the entrance of the cinema, Agent Phil couldn’t help but exclaim at the sight of the long line of people waiting.

At Spike’s suggestion, the BSI team decided to watch a movie to relax and unwind from the stress they had been under lately.

However, seeing the line of over a hundred people at the entrance left Amanda and her team somewhat surprised.

It was the midnight show, yet so many people were willing to wait in line for a movie.

“Is this movie really that popular?”

As a BSI agent, Angela hadn’t participated in any supernatural cases firsthand, but she had been exposed to the field of paranormal investigations.

With some real-world experience under her belt, she clearly didn’t take the movie too seriously.

“Of course! Haven’t you heard what the director said during his interviews? This is a ‘real’ documentary. The inspiration for The Blair Witch Project came from it. Supposedly, the director made The Blair Witch Project as a decoy to trick the federal government into thinking this was just another movie promotion tactic…”

A man in the line, catching sight of Angela’s attractive features, eagerly began sharing his thoughts.

“Exactly! That’s the only reason I came out here to see it.”

Once someone started the conversation, others in the line chimed in with their opinions about the film.

From the BSI agents’ perspective, these layered, convoluted justifications for watching the movie didn’t hold up to scrutiny. However, the crowd in line seemed to wholeheartedly believe them.

“Another bunch of people duped by a movie’s marketing,” Phil remarked, shaking his head as he and the team quietly joined the end of the line amidst the buzz of conversation about the movie’s ‘secrets.’

“If I’m not mistaken, someone here once believed The Blair Witch Project was real too,” Agent Zhou said with a smirk, addressing Phil’s self-satisfied demeanor.

“Cough, cough!”

Phil’s face turned awkward as he cleared his throat at Zhou’s blunt remark. Looking at the amused expressions of his colleagues, he quickly explained, “That was because of all the rumors back then. I wasn’t careful and got tricked. But I’m wiser now! This time, I can tell the so-called ‘documentary’ is just a marketing ploy by the production company. I won’t fall for the same trick twice.”

Despite Phil’s confident assurance, it still took Amanda and her team forty minutes of waiting to get tickets. This delay was partly due to the limited number of theaters in Washington but also a testament to the popularity of Paranormal Activity.

---

The film wasn’t just showing at the two cinemas in Washington. Thanks to Universal’s promotional efforts and Allen’s reputation from his previous box office successes, many theater chains were eager to screen the new movie.

Even though The Blair Witch Project had spawned countless imitators, most of which bombed at the box office, theaters still had high hopes for Paranormal Activity. After all, Allen’s involvement as a writer or director had always guaranteed profitability. Not a single one of his films had lost money so far.

Theaters hoped this winning streak would continue with Paranormal Activity.

The film was released in over 1,800 theaters across the United States, highlighting the confidence the industry had in it. However, this enthusiasm came with conditions—if the movie’s box office performance didn’t meet expectations, theaters wouldn’t hesitate to pull it and replace it with a more profitable film.

---

“Allen, you don’t seem nervous at all,” James Wan remarked, looking at Allen, who appeared calm and composed.

As a rising horror director in Hollywood, James Wan, despite being seasoned by multiple premieres, still felt uncontrollable anxiety whenever he released a new film. Seeing Allen’s calmness surprised him.

“The movie’s done and out. Being nervous won’t change anything,” Allen replied, glancing at Wan in the dim theater.

“Besides, I have confidence in Paranormal Activity.”

Wan assumed Allen’s confidence stemmed from faith in his work. But in reality, Allen’s calm demeanor was based on the success of the original Paranormal Activity, which had achieved phenomenal box office results.

With their differing perspectives, the screening began.

After Universal’s iconic opening animation, the film opened with a message thanking the family for allowing their “documentary” to be shown. This was a common trope of mockumentaries, used earlier in The Blair Witch Project, to immerse the audience and make them feel like they were watching a real documentary instead of a film.

As the opening credits faded, the movie began with a simple setup. The male protagonist used a handheld DV camera to film around the house. Though the shaky footage wasn’t particularly noteworthy, it effectively drew the audience into the mockumentary’s narrative.

Having reviewed Paranormal Activity countless times during editing, Allen was less interested in the movie itself and more focused on observing the audience. From their expressions, he could easily discern boredom and skepticism.

This initial reaction was expected; the slow buildup was necessary to establish an everyday setting that would ground the audience in the story and prevent them from becoming disengaged later.

Fortunately, despite the slow start, no one left the theater. The audience’s patience could be credited to their exposure to The Blair Witch Project and its imitators, which had familiarized them with the mockumentary style.

---

Chapter 169: The New Film's Reputation

"Susie?"

"Did you hear that sound?"

"Yes."

In the theater, on the silver screen...

As the story progressed, the film entered its latter half.

"That's an interesting camera angle."

Sitting nearby, James Wan noticed the angle of the DV camera shown on the screen. Instead of focusing on the bed in the bedroom, the camera was aimed at the door. He nodded slightly.

Clearly, he realized that this camera angle was intentionally designed.

The dark night on the screen, combined with the faint outlines behind the door, created endless imagination for the audience, even though nothing had appeared.

Darkness has always been a primal trigger for human fear.

Frowning as he stared at the screen, James Wan listened closely to the sound effects coming from the theater's audio system.

Turning to Allen, he spoke in a somewhat uncertain tone, "The film's sound design seems to include more than just natural sounds."

Logically, films like Paranormal Activity—mockumentary-style horror films—tend to adopt a minimalist approach to sound, often without any dedicated audio equipment.

However, James Wan felt that Paranormal Activity’s sound design was distinctly different from other mockumentary-style films he had seen before.

"When shooting the film, I initially established a monotonous hum in the room, and during post-production, I added low-decibel rumbling sounds to create a subtle feeling of an ambient presence," Allen explained.

This was the only change Allen made to the sound in Paranormal Activity to enhance the immersive experience of the film.

The sound was faint, and during screenings, it could naturally be drowned out by other noises.

James Wan, however, noticed it.

"A brilliant touch," James Wan remarked after hearing Allen's explanation. "Indeed, the devil is in the details."

Such a design might seem insignificant on the surface, but the quality of a film often lies in its smallest details.

As James Wan and Allen were discussing, the movie's plot reached its climactic moments. With an abrupt sound from the screen, the theater was filled with startled gasps from the audience.

Observing the audience's frightened reactions, James Wan was nearly certain that Paranormal Activity had achieved its intended effect in terms of viewer engagement.

Now, it was just a matter of waiting for the final box office results.

---

Washington, D.C., screening room.

The movie Paranormal Activity had reached its conclusion.

In the film, the heavy footsteps of the female protagonist echoed from downstairs. The dull, thudding sounds, combined with the barely perceptible ambient hum, created an oppressive atmosphere.

"…"

Just as everyone in the theater felt suffocated by the tension of the footsteps, the noise suddenly stopped at the stairs.

Before the audience could catch their breath, a body was suddenly hurled at the camera. The once-stationary camera in the bedroom toppled over, and the final image froze on the protagonist's pitch-black eyes rushing toward the lens.

"Ah!"

Unsurprisingly, this final scene became the most terrifying moment of the movie, causing many audience members, including those near Amanda, to drop their popcorn in shock.

"Whew…"

Seated beside Agent Zhou, Agent Phil let out a breath in the now-lit theater, his face still showing traces of fear.

Staring at the credits rolling on the big screen, he gulped and muttered, "This movie… it can’t be real, right?"

"…"

Hearing Phil’s comment, Agent Zhou turned to him with a speechless expression.

If Zhou remembered correctly, Phil had confidently claimed he wouldn't be fooled a second time. Yet, after one screening, here he was again…

Noticing Zhou’s gaze, Phil finally realized what he had said. He coughed awkwardly, trying to mask his embarrassment, then spoke again to justify himself. "I’m not questioning the movie’s authenticity. It’s just that the content felt so real, it reminded me of some videos on YouTube. I thought it might warrant an investigation."

While Phil’s comment was mostly an excuse, it also highlighted Paranormal Activity’s excellence.

By creating the illusion of authenticity through a mockumentary style, the film blurred the lines between reality and fiction, immersing the audience in its narrative. Even seasoned BSI agents like Phil, who had encountered real supernatural cases, couldn’t help but be unnerved by the storyline.

"It’s just a movie," Amanda said, exchanging glances with Spike to confirm that there was nothing suspicious about Paranormal Activity.  

Turning to the BSI agents around her, Amanda continued, "Alright, the movie’s over. If there’s nothing else, let’s wrap up and head out. We’ve got plenty of work waiting for us tomorrow."

For the BSI, watching movies was merely a way to relax during downtime. Compared to the fictional supernatural events in movies, the cases they dealt with in real life were far stranger and more dangerous.

---

"That movie was scarier than I expected. I haven’t dared to sleep since I got back…"

"Boring film. The plot was terrible. I can’t believe theaters even bothered screening this; I almost fell asleep."

"It was terrifying. Ever since I got back from the theater, I haven’t dared to go to the bathroom—or even look in the mirror."

"So, is this movie real? I heard the director say on a show that everything is based on true events. Does that mean the family really died, and the spirit that possessed the woman was real?"

"This is real! I knew it—there’s supernatural power in this world. This footage proves it!"

"Come on, man. It’s just a movie, like The Blair Witch Project. I admit it was well-made, but it’s all fiction."

"No, Paranormal Activity is real, and so is The Blair Witch Project!"

"You’re crazy, man. You can’t tell the difference between movies and reality."

"No, I’m not crazy. You’re the ones being deceived…"

"I’m done talking to you. You’ve lost all sense of reason."

"Does anyone know where the house in the documentary is? Could there be hidden secrets in that place?"

Thanks to the internet, the reception of a movie is often determined shortly after its release.

Setting aside the lukewarm reviews from those unimpressed by mockumentary films, most viewers gave Paranormal Activity positive feedback. The film’s plot genuinely frightened them, and for a horror movie, that’s what truly matters.

With a solid opening reception and Universal Studios' promotional push, Paranormal Activity’s reputation quickly began to grow.

---

(End of Chapter)

Chapter 170: Box Office

"If The Blair Witch Project was a somewhat novel gimmick film, then Paranormal Activity clearly inherited all of that and managed to craft a complete story. Since The Blair Witch Project, the market has been flooded with 'mockumentary' films, though very few have truly succeeded. Our initial skepticism was whether this live-stream-style horror trick could captivate audiences a second time. The results, however, speak for themselves: lightning can strike twice. Allen may not be a great director, but he is undoubtedly a successful screenwriter."

—Roger Ebert

"Paranormal Activity is a unique horror film that relies on suspense rather than spectacle. It employs a 'less is more' approach to build tension. The story is simple yet terrifying: a young couple, disturbed by strange noises in their house at night, decides to set up a camera in their bedroom to capture potential paranormal occurrences. This straightforward plot, combined with the mockumentary format, makes the movie both compelling and genuinely frightening."

—Rotten Tomatoes, 80% Fresh

Releasing Paranormal Activity as a midnight screening proved to be a brilliant move.

Online, horror fans quickly spread the word, causing the film's reputation to grow exponentially. At the same time, professional critics began sharing their reviews, with many praising the film.

Notably, veteran critic Roger Ebert, who had harshly criticized The Blair Witch Project, gave Paranormal Activity a surprising three-and-a-half-star rating. Perhaps the recent flood of mockumentary films had given Ebert a new appreciation for The Blair Witch Project.

The film’s explosive online buzz translated into box office success the very next day.

In just three days, Paranormal Activity grossed $32 million across North America, taking the top spot in weekend box office rankings. When Hollywood studios reviewed the production costs of the film, they collectively gasped in astonishment.

The production budget of Paranormal Activity was even lower than expected, yet it caused a massive ripple in the box office, generating extraordinary profits. This envious success left every major Hollywood studio green with envy.

Naturally, Allen, the mastermind behind this "miracle," became the hottest topic among Hollywood executives.

If the success of The Texas Chainsaw Massacre could be attributed in part to James Wan, and if The Blair Witch Project's box office triumph was largely a result of clever marketing, then the performance of Paranormal Activity solidly proved Allen's undeniable talent.

As the saying goes, "Three's a charm." One or two box office hits might be called flukes, but a third consecutive hit establishes a track record. Allen was no longer just a dark horse—he was a bona fide "money tree."

What made this money tree even more appealing was its low maintenance. With minimal investment, it yielded a harvest of profits, filling Hollywood's coffers with Benjamins.

While all of Hollywood was celebrating the success of Paranormal Activity, the film's box office momentum showed no signs of slowing. By the end of its first week, it had grossed $82.5 million, surpassing the record set by The Texas Chainsaw Massacre 2. James Wan even called Allen to congratulate him, albeit with a hint of resigned humor.

From a purely box office perspective, The Texas Chainsaw Massacre 2 was undeniably a success. As a sequel, its high earnings had already satisfied Universal Studios. However, when compared to Paranormal Activity, the difference was stark.

After all, no matter how profitable The Texas Chainsaw Massacre 2 was, its production costs made it incomparable to the cost-efficiency of Paranormal Activity.

...

"Alright, I admit it, Allen—I’m starting to regret it..."

On the phone with Universal’s Ron Meyer, his voice was tinged with remorse.

"If the executives at Warner or Paramount heard you right now, they’d probably punch you, Ron. Universal made a killing with Paranormal Activity."

On the other end of the line, Allen understood exactly what Ron Meyer was regretting, but he chose to steer the conversation elsewhere.

In San Marino, Allen’s home had become a hotspot for reporters, thanks to the buzz surrounding Paranormal Activity.

The woes of Hollywood fame were starting to catch up with Allen. Yet, he wasn’t particularly bothered. On the contrary, his growing notoriety made it easier to keep his other identity hidden.

After all, who would suspect that a celebrity constantly under media scrutiny was secretly a mastermind changing the world?

"But Universal could have made even more money."

Ron Meyer’s frustration deepened. Universal had invested in Paranormal Activity but didn’t fully finance it. Instead, Allen himself was a significant investor.

With Paranormal Activity’s low production cost and Allen serving as director, writer, and producer, he negotiated a deal to take one-third of the film’s profits.

At first, Universal didn’t pay much attention to this arrangement, especially before the film’s release. But now, as Paranormal Activity’s box office soared, it became clear that the higher the earnings, the more Allen would pocket—and the less Universal would retain.

This reality left Ron Meyer frustrated but helpless.

After all, while he anticipated success for Paranormal Activity, he never imagined it would be this monumental.

"Universal is doing well, too. The higher Paranormal Activity’s box office climbs, the better it is for all of us."

(End of Chapter)