From YouTube to the multiplex: How low-budget horror films are beating big-budget studio bets

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Two of the biggest box-office standouts of 2026 so far were not made by established studio directors or built on franchise IP.“Obsession” and “Backrooms” — horror films from internet-native directors in their 20s — have outperformed far more expensive studio releases.

The breakout success of these films has ignited debate across Hollywood about what made these movies so popular, especially among Gen Z moviegoers who haven’t been flocking to cinemas in recent years.Here’s what to know:”Obsession” was directed by 26-year-old Curry Barker, who got his start on YouTube with sketch comedy and horror shorts.

Released May 15 by Focus Features, the film was made for just $750,000 but opened to a staggering $17 million and has improved on its debut every weekend since.“Obsession” set an all-time horror record for the biggest fourth weekend for a film at the domestic box office, raking in $25.4 million.

It now ranks as the year’s fifth most popular film, nearing $200 million domestically and roughly $295 million worldwide — ahead of Pixar’s “Hoppers” ($166 million) and Paramount’s “Scream 7” ($121 million), per Box Office Mojo.Hollywood Inc.

It’s been six days since A24’s latest horror film, “Backrooms,” hit theaters.In a rare feat for any indie arthouse movie, the thriller is currently on track to rake in $100 million.“Backrooms,” from 21-year-old Kane Parsons — known on YouTube as Kane Pixels — drew on an online fascination with liminal spaces, leading audiences through an endless run of nearly indistinguishable rooms.

Released May 29 by A24 (known for such acclaimed films as “Moonlight” and Everything Everywhere All at Once”) on a reported $10-million budget, it opened to $81 million and crossed $100 million in under a week.Within two and a half weeks, it had outgrossed the entire theatrical runs of horror films “Five N...