Oren Peli, an Israeli-American filmmaker, wrote and directed on a shoestring budget of just $15,000. The film was shot over a period of three days in July 2006, using a single camera and a basic lighting setup. The story follows a young couple, Micah (Katie Featherston) and Ryan (Christopher Landon), who set up a camera in their home to document the strange occurrences they claim to be experiencing.

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The film's success was unprecedented. opened in just four theaters in the United States on October 19, 2007, grossing $298,758 on its opening weekend. As the film expanded to more theaters, its box office earnings continued to soar, eventually grossing over $193 million worldwide.

The film's found footage style, which mimics the look and feel of home video recordings, was a deliberate choice by Peli to create a sense of realism and immediacy. This approach, which would later become a staple of the horror genre, allowed the audience to feel like they were experiencing the events firsthand.

The film's impact extends beyond the horror genre, too. 's use of social media and online marketing strategies raised the bar for independent filmmakers, demonstrating the power of low-budget, high-concept films to reach a wide audience.