Lionsgate Pushes Low-Budget

On Wednesday, Lionsgate said it would begin producing microbudget films, which cost $2 million or less, reported The Wrap. A low-cost film has minimal risk and little overhead, but could pay off big time if it does well at the box office. Lionsgate is not the first studio to push this strategy however. After Paramount's "Paranormal Activity" grossed $193.4 million worldwide on a $15,000 budget, the studio began its own microbudget division called Paramount Insure.

The Wrap points out though that the division has not produced many films or a similar hit. In February, Paramount Insure acquired the indie movie "The Devil Inside" with hopes to replicate the success of Paranormal Activity. 

Micrbudgets may dip much lower than $2 million. The Wrap cites Ed Burns' new film "Newlyweds" had a $9,000 budget. The movie will close the upcoming Tribeca Film Festival. Lionsgate is scheduled to make ten micro-films a year.