Indiewire and Bartlett’s Screenwriting Tips (via John Horn) had the scoop – that Paramount, inspired by their success with PARANORMAL ACTIVITY, the film “with a production budget of $15,000…  one of the most profitable films in Hollywood history“, will not only pick up the filmmaker’s next film AREA 51; they are apparently keen on setting up a new arm for movies budgeted at less than $100,000.

“The as-yet-unnamed division’s initial plan is to finance as many as 20 “micro-budget” movies annually starting in 2010, Adam Goodman, president of Paramount’s film group, said Thursday.”

The best ones will most likely be given a theatrical exhibition in theaters equipped to show digital movies, enabling a lower cost distribution model than the expense of producing multiple film prints; and marketed without costly television commercials, print ads etc, instead relying on word-of-mouth. At the moment one will assume that the new initiative will be aimed at established talent, but there’s no reason why more breakthrough talent can’t make it. So dust off those Micro budget ideas folks!