Summary of the Core Content
This report analyzes the unusual phenomena in the global film market: despite the industry's overall conservatism and the near-collapse of medium-budget films, horror films have experienced a surge in popularity. The number of horror films released in China has increased from 13 in 2019 to 31 in 2025, with expectations of exceeding 50 by 2026. In the North American market, the revenue share of horror films has soared from 4% a decade ago to 17%, overtaking superhero films, which now account for only 6.8%.
Horror films are considered the "safeest investment" for producers due to their low cost, low risk, fixed audience base, and inherent social sharing properties. They also provide a limited number of opportunities for young, resource-limited directors to make a name for themselves. The new generation of filmmakers has moved away from traditional tropes and has started to explore real-life anxieties such as intimate relationship issues, workplace stress, and age-related fears, transforming horror from a niche genre into a mainstream category that resonates with young audiences. The future success of horror films depends on their ability to break away from homogeneous, low-quality content and achieve higher standards of craftsmanship.
Detailed Explanation
1. Why are horror films considered the "winter-proof" genre in the film industry?
The investment logic in the film industry has completely changed. Either huge-budget blockbusters are made with the hope of generating billions in revenue, or small-budget projects are pursued, but medium-budget films, with their uncertain returns, are rarely invested in. Horror films, however, represent the most stable option among low-budget projects. The production cost of most domestic horror films ranges from 2 to 5 million yuan, which is roughly equivalent to the cost of one episode of a regular urban drama. Even if they only generate a few million yuan in revenue, the losses are minimal. Since they don't require expensive stars, grand sets, or special effects, they can be completed quickly using abandoned buildings or old hospitals. This risk-averse nature was proven by Hollywood decades ago; for example, Universal Studios turned around during the 1930s financial crisis by producing low-budget horror films like "Dracula" and "The Mad Scientist." In recent times, Lionsgate's "SAW" became a blockbuster for just over 100 million dollars, propelling the studio to the forefront of the industry. In a poor market, producers prefer these projects because they offer minimal risk and potential for a small but steady profit.
2. The profit model of horror films is different from that of regular films; they have a built-in "free traffic" advantage.
Unlike other films that rely on expensive marketing campaigns, horror films don't need to spend millions on star appearances, red carpets, or online promotion. Over 70% of viewers watch horror films with friends or partners, making it a social activity. Filmmakers simply need to create frightening scenes and share them on social media, which drives word-of-mouth. Many horror film premieres also become viral events on their own, with audiences sharing footage and creating their own content. This natural ability to spread makes horror films much cheaper to produce and attracts a young, female audience.
3. Modern horror films no longer rely on traditional ghostly scares; they target real-life fears.
Traditional horror tropes (such as embroidered shoes, ghost marriages, and supernatural curses) have been abandoned. New directors focus on modern fears, such as controlling partners, never-ending traps, and stressful work environments. These themes are more relatable to today's audience. Many of these new directors are themselves horror fans or have experience in creating short videos or games, making their films more authentic and effective in touching viewers' emotions.
4. Horror films provide a pathway for new, resource-limited directors to succeed.
The film industry's barriers to new directors are high, but horror is one of the few genres that doesn't require a lot of experience or connections. Success in horror films depends on skills like pacing and emotional manipulation. Many successful horror directors (born in the 1990s or 2000s) have no prior experience with long-form films and have gained fame through horror. This makes the genre an ideal platform for young, talented creators.
5. The popularity of horror films is masking underlying issues; it's based on low-cost competition.
While the number of horror films is increasing, most of them are low-quality productions that reuse tired themes and lack depth. This trend cannot sustain the genre in the long term. To become a mainstream genre, horror films need to improve in quality and provide something memorable to audiences. Otherwise, the current boom will eventually fade as viewers' interest wanes.