Low-budget horror films Backrooms and Obsession have sparked what some in Hollywood are calling a “box office earthquake,” outperforming major studio blockbusters and raising questions about the future of big-budget filmmaking.
In recent weeks, the two indie horror films made by young Gen Z directors have delivered massive profits while expensive franchise films like Masters of the Universe and The Mandalorian and Grogu have struggled to impress audiences. Analysts say this marks a possible shift in audience preference toward original, low-cost storytelling over recycled intellectual property.
Backrooms, released by A24 and directed by Kane Parsons, reportedly cost around $10 million but earned more than $135 million in the US. The film, starring Chiwetel Ejiofor and Renate Reinsve, is a surreal horror set in a maze of unsettling corridors. Meanwhile, Obsession, made on a budget of just $1 million, has grossed over $225 million worldwide, becoming a rare hit with rising box office returns in its second and third weeks.
In contrast, blockbuster films with budgets exceeding $150 million have underperformed, needing hundreds of millions more just to break even once marketing costs are included. Industry experts suggest audiences, especially Gen Z, are increasingly drawn to original, unsettling stories rather than nostalgic franchises.
Both films were created by young filmmakers who developed their skills through online platforms like YouTube, bypassing traditional film schools and studio systems. Their success reflects a broader trend where younger audiences—who attend cinemas more frequently than older generations—prefer immersive, conversation-driven films that encourage debate and interpretation.
Horror, in particular, has proven highly effective in this shift due to its low production cost and strong communal viewing experience. Experts say studios may now prioritize younger creators and smaller, high-concept films, even as traditional franchises continue to dominate production pipelines.
The trend suggests a changing Hollywood landscape where originality and audience engagement may rival big-budget spectacle.