Blumhouse Productions has long established itself as a powerhouse in the horror genre, known for hit franchises like Paranormal Activity and Insidious, among others.
However, after years of success, raking in massive returns from its low-budget but high-concept horror films, it’s now facing a string of box office flops that have been continuing for about 18 months.
In fact, despite expectations that its recent release, M3GAN 2.0, would put the studio back on track, it received a poor reception—earning only $10.2 million domestically and $17.1 million globally on its opening weekend, against a budget of about $25 million.
So, with this ongoing box office slump, what’s next for Blumhouse?
What Lies Ahead for Blumhouse Productions?
Blumhouse CEO Jason Blum has a sudden realization after the box office failure of M3GAN 2.0.
Following the massive success of the first M3GAN movie, which became one of the studio’s biggest box office hits and even achieved viral status, there were high expectations for its sequel.
However, shifting its genre from horror to sci-fi didn’t sit well with fans.
In an interview with The Town with Matthew Belloni, Blum admitted they had overestimated M3GAN’s potential and learned their lessons the hard way.
“I said to [Blumhouse employees] this morning that if you look at any massive talent, whether they are a movie star or whether they are a production company or whether they are a studio, every one of your favorite people have gone through slumps,” he said. “And that applies to Blumhouse, too.”
Blumhouse insiders told The Hollywood Reporter that “soul-searching within the company has already commenced.”
With 2025 shaping up to be a tough year, the studio is now reevaluating its lineup and assessing whether a horror film can still qualify as a cinematic event, especially in a market that is already “oversaturated” with similar content.
Blumhouse has also acknowledged that releasing as many as 10 movies a year is an ambitious goal. Blum even admitted that box office can no longer handle as much as horror films like before, especially new and smaller titles.
By the looks of it, the studio will need to stick to the branding that made it one of the best in the genre.
And Its signature horror focus is expected to continue with the upcoming The Black Phone 2 in October and Five Nights at Freddy’s 2 in December.
What Makes Blumhouse Productions a Box Office Slump in 2025?
Since it was founded by Blum and Amy Israel in 2000, Blumhouse has been known for being behind some of the most successful horror movies like Paranormal Activity, Insidious, The Purge, and Happy Death Day.
These films, despite having low budgets, have collectively grossed over $6 billion worldwide. However, the same can’t be said for its performance when 2024 began.
It all started with WolfMan, which only earned $34.1 million globally, followed by The Woman in the Yard with $23.3 million and Drop with $2.6 million.
Unfortunately, it continued in 2025, with the biggest shocker being M3GAN 2.0’s box office failure.
Anyhow, viewers also have to consider that its release had bad timing, competing against the likes of Lilo & Stitch, How to Train Your Dragon, and Elio in its first week, and Jurassic World: Rebirth, Superman, and The Fantastic Four in the following weeks.
With its current struggle, this only proves that even the most established studios can face challenges in the changing landscape of movie viewing. It also shows that challenging viewers’ viewing habits is a risky move.
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