Without a grand premiere or overwhelming publicity, Insidious remained relatively quiet, just like most low-budget films. The marketing for this movie primarily focused on three key figures: Matthew, James Wan, and Lily Depp.
With Matthew's increasing success, he brought a certain star power to the project. He tirelessly promoted Insidious at numerous public events, emphasizing that it was one of the must-watch horror films of 2010. For an investor, self-promotion was a necessity.
Additionally, starting in October, TMZ broke the news that the house Matthew used to live in on the northern outskirts of Burbank was a genuine haunted house. A gruesome murder had occurred there, and the killer was still imprisoned, awaiting execution.
If this had been about someone else, no one would have cared, but with a superstar like Matthew, it quickly became a hot news topic. Media outlets were quick to report and exploit every detail about the house and the infamous murder that had taken place there. Some even went so far as to sneak into the property, taking videos of the eerily empty home.
This house had been altered by James Wan for the filming of Insidious, and its dilapidated, haunting atmosphere made it the perfect fit for a horror film. The fact that the film was shot in a real haunted house drew significant attention from horror movie fans.
During a promotional event for Insidious, Matthew, who was both an investor and producer, was asked by reporters about the so-called haunted house.
"I didn't think much of it at the time. I needed a stable place to live, but my acting career was just starting, and I didn't have much money, so I bought that house because it was affordable," Matthew candidly admitted to the reporters. "Living there wasn't anything special. I always felt fine, never encountered anything strange. Maybe I'm just naturally fearless."
He added, "When James Wan needed an old house with some history for Insidious, I thought it would be a good fit, so I let the crew use it for filming."
A horror film shot in a supposedly haunted house naturally heightened the atmosphere and piqued the interest of horror fans.
The second key figure in the film's promotion was James Wan. Though not a big name in Hollywood, he had garnered some recognition among horror enthusiasts with his Saw films. Promoting Insidious as a new horror film from the creator of Saw was quite effective.
The third promotional element involved Lily Depp. As Johnny Depp's daughter, Lily Depp was no stranger to the media and some film fans. Simply being the daughter of Johnny Depp and the goddaughter of Matthew Horner and Keira Knightley ensured that Lily Depp wasn't just an ordinary person.
Due to child protection laws, Lily Depp couldn't participate in the film's promotional events, but the production team made good use of her connection to Johnny Depp. The internet even coined the nickname "Pirate Princess" for her, referencing her famous father.
Compared to the other small actors, Lily Depp drew ten or even twenty times more attention.
The children of big stars are always a media focus in Hollywood, and they represent a powerful force within the industry.
While the overall marketing for Insidious wasn't extensive, it was highly targeted.
The film's production budget of $1.5 million meant that a massive marketing campaign wasn't feasible. Matthew had taken a gamble with this investment, betting that James Wan could recreate the success of Saw.
Even a modest promotional campaign can easily cost more than $10 million.
After some well-targeted marketing, Matthew began monitoring the response to Insidious during its limited release.
As the distributor, Warner Bros. was also cautious in its approach. They weren't investing too much into the film initially, given its modest size and genre, and the fact that they didn't own the film's rights.
Although Warner Bros. had a strong partnership with Matthew, they were still a business, not a charity.
Without enough evidence of potential profit, Warner Bros. wasn't going to invest heavily in Insidious.
The film's release in 120 theaters was largely due to Matthew's connections with Warner Bros. Otherwise, it would've been tested in just a handful of theaters before expanding based on audience response.
Despite the limited release, the targeted marketing helped Insidious generate interest. On its opening day in mid-October, the film grossed $425,000, with an average per-theater revenue of over $3,500.
With the positive opening day box office and word-of-mouth spreading among horror fans, attendance noticeably increased on Saturday, pushing the per-theater average to $5,000. Some theaters even approached $10,000 in revenue.
By the end of its first weekend, Insidious grossed $1.42 million from 120 theaters, with an average per-theater revenue exceeding $10,000.
For a horror movie, especially one without a mainstream blockbuster budget, this was a strong performance.
After all, it wasn't a major commercial production, and October wasn't a peak season like the summer or holiday periods.
More importantly, Insidious was receiving great feedback from horror fans. Warner Bros. conducted on-site surveys, and the data showed that horror enthusiasts were giving the film relatively high ratings.
"To turn such a ridiculous story into something so terrifying is an impressive feat by James Wan! The atmosphere is nearly perfect. The suspense and tension in the first half had me sweating, and the sudden shift in the second half didn't disrupt the mood but added a layer of intensity. The cinematography was excellent, and the score was downright chilling. A fantastic horror film!"
"It looks like James Wan is set to inherit the title of modern horror master. The timing of the scares and the placement of the creatures were impeccable. While the pacing was a bit slow in the beginning, the second half made up for it, and that killer ending! This is the best horror film to come out of Hollywood in the past two years!"
"As a seasoned horror fan, I can say it was genuinely terrifying. During the classroom scene, the chalkboard had James Wan's name on it... this director has a great sense of humor!"
Warner Bros.' survey was limited to horror fans. While horror is a significant genre in Hollywood, it's not a mainstream one. In most cases, horror movies don't appeal to the general public and attract mostly genre enthusiasts.
Blockbuster horror films like The Sixth Sense typically succeed by downplaying the horror elements.
Insidious, however, was pure horror through and through.
The film scored an "A-" from audience surveys on CinemaScore, and the media's average rating was 70.
For a horror film—especially in an era when Hollywood horror had become increasingly formulaic—this was an impressive achievement.
"James Wan deliberately avoided horror clichés. The characters' reactions and actions in the film were exactly what the audience would do in similar situations. This is key. The teaser trailer didn't reveal too much, and the rapid-fire montage of terrifying scenes, while a traditional approach, was still scary enough."
"What sets Insidious apart from other haunted house films is that the director didn't lazily rely on gore to shock the audience. He avoided cheap tricks and delivered the real deal, terrifying the audience to the core."
The critical reception for Insidious was generally positive.
Considering the film's market performance, it was clear that Insidious had the potential to be a box office success.
As a result, both Matthew and Warner Bros. became more confident and increased their investment in the film's promotion and distribution.
The first step was to expand the number of theaters showing the film. Starting that Monday, Insidious was rolled out to nearly 600 more theaters. Warner Bros. was actively allocating resources and prints, but preparing and distributing copies to theaters took time.
Matthew and Warner Bros. had been in close communication. Once it became evident that Insidious had real potential, Warner Bros. confirmed that they would maximize the film's release by the upcoming weekend, aiming to capture the largest market share before Halloween.
During the four weekdays following the initial weekend, Insidious maintained an average per-theater revenue of over $1,000, adding another $2.4 million to its North American box office total.
By the time the next weekend rolled around, the film had grossed nearly $3 million in North America.
Even if the film's expansion didn't go as planned, Matthew was already on track to recoup his $1.5 million investment, especially with the potential from international markets, television, and streaming rights.
After just one week, Insidious was already a financial success for Matthew.
Matthew also had an in-depth conversation with James Wan, noting that Insidious's plot clearly left room for a sequel. The film's broader world had barely been explored, making it ripe for follow-up installments. James Wan had also mentioned ideas for a new horror franchise, which Matthew saw as valuable opportunities.
As an investor and producer, Matthew was pragmatic, a mindset that was common in Hollywood. Otherwise, it was easy to get burned by unreliable projects.
Just like on the other side of the Pacific, Hollywood had no shortage of directors and producers who paraded questionable projects around town.
In addition, as James Wan's new horror project kicked off, Matthew planned to initiate formal negotiations with Nicolas Cage.
When the next weekend arrived, Insidious saw a massive expansion, with the number of theaters skyrocketing to over 3,100, making it one of the largest horror releases leading into Halloween.
Many other horror films, including Piranha 3D, also hit theaters, all competing to capture a slice of the traditional Halloween horror market.
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