Promoting 'Paranormal Activity'

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Case Details:

Case Code : MKTG235
Case Length : 19 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Paramount Pictures Corporation
Industry : Media and Entertainment
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"When you're sitting down to market any movie, you have to look at the assets for the film. But in this case, the hugest asset is the film itself." ¹

- Megan Colligan, co-president of marketing, Paramount Pictures Corporation², in October 2009.

"Using a campaign of limited showings, social media, and word-of-mouth fan buzz, the film has managed to become a breakout hit without the aid of a glitzy marketing campaign -- or even a traditional movie trailer." ³

- Lisa Resper Francis, CNN.com⁴, in October 2009.

Achieving Abnormal Success

What began as a low-budget film with a hand-held camera, no big-name director, no star actors, and a rock-bottom budget of US$ 15,000 in 2007 went on to become a raging hit earning a staggering US$ 65 million by the end of October 2009.⁵

Paranormal Activity (a horror film) made by an Israeli video game designer Oren Peli (Peli) and released by California-based film production and distribution company, Paramount Pictures Corporation (Paramount Pictures), was one of the highest revenue earning low-budget films in Hollywood⁶, according to industry observers.

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1] Andrew Hampp, "How 'Paranormal Activity' Hit It Big," http://adage.com, October 12, 2009.
2] Paramount Pictures Corporation, founded in 1912 in California, USA, is a global film production and distribution company. As of 2009, it was a unit of leading content company with digital and television entertainment brands, Viacom.
3] Lisa Respers Francis, "Surprise Hit 'Paranormal Activity' Scares Money out of Moviegoers," www.cnn.com, October 12, 2009.
4] Founded in June 1980, CNN.com is a cable news network in the US.
5] Paranormal Activity was released in the US on October 16, 2009.
6] The word Hollywood is used to refer to the American film industry.

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