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World's most profitable film was made in Rs 6 lakh, grossed more than RRR, Animal, Jawan; began Rs 5000-crore franchise

This film was made in just Rs 6 lakh but grossed over Rs 800 crore worldwide, setting a new world record.

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The world's most profitable film
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It’s no state secret that big budget films have higher chances of succeeding at the box office. A number of factors make that outcome possible, the most notable of which is the presence of big stars and a bigger marketing budget that allows them to reach the masses. But every once in a while comes a film that defies this formula and becomes a sleeper hit – a film that succeeds despite zero expectations. The biggest sleeper hit of them all returned a 133,000% profit.

The film that earned Rs 800 crore on a Rs 6-lakh budget

In 2007, first-time filmmaker Oren Peli made a groundbreaking new film. Titled Paranormal Activity, the film used the found-footage format popularised by The Blair Witch Project. Shot using CCTV cameras and hand-held devices, the film was written, directed, shot, produced, and edited all by Peli himself on a shoestring budget. As per reports, Paranormal Activity was made on a budget of $15,000 (Rs 6 lakh at the time). After it was sold to the studios, post-production and marketing costs of $200,000 (Rs 85 lakh) were added to it. Upon release, Paranormal Activity was a runaway hit, minting a whopping $194 million (Rs 800 crore at the time) at the worldwide box office. The 133,000% profit makes it the most profitable film ever made.

Paranormal Activity’s legacy

The film’s success spawned several sequels, both theatrical and direct-to-home. The various Paranormal Activity films have together grossed $890 million worldwide, which comes out to over Rs 4600 crore (when measuring as per different years’ exchange rates). In addition, digital rights and home release earnings put the franchise’s earnings over Rs 5000 crore.

How Paranormal Activity dwarfs Indian blockbusters

While it was made on a budget of just Rs 6 lakh (still under Rs 1 crore after post-production), it was a huge hit. The $193 million it made is more than almost all Indian films ever made. Baahubali, for instance, earned under $100 million. Even RRR, a much bigger hit, earned just over $160 million. Other recent blockbusters like Jawan ($140 million) and Animal ($110 million) also lag far behind. In fact, all the Indian films that have out-earned Paranormal Activity have been mega-budget spectacles.

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