Paramount to Launch Micro-Budget Movie Division

Inspired by “Paranormal” success, studio plans to finance as many as 20 movies budgeted at less than $100,000

Last Updated: December 11, 2009 @ 12:02 PM

Fresh off its stunning "Paranormal Activity" success — a $15,000 thriller that has grossed more than $107 million in its domestic release with little paid advertising — Paramount Pictures is set to launch a new production business for movies budgeted at less than $100,000.

The as-yet-unnamed division plans to finance as many as 20 "micro-budget" movies annually starting in 2010, according to people familiar with the studio’s plans who spoke on condition of anonymity because the formal announcement has not been made. A current Paramount executive will run the business, but the selection has not yet been revealed  publicly. Funds for the movies — no more than $2 million total annually — will be part of Paramount’s existing production budget.

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