Post-production and delays
After the film was finished, Peli signed with the Creative Artists Agency. They screened the movie in 2007 at the Screamfest Horror Film Festival and, as a result, began to give away DVDs to anybody who would be willing to distribute it. It did not see a spotlight until 2007 when Miramax Films Senior Executive Jason Blum and his producing partner, Steven Schneider, viewed the movie for themselves. Working with Blum, Peli edited the film down so that it ran tighter and smoother but more problems arose: Sundance Film Festival would not accept the film and even though the Slamdance Film Festival did, no distributor picked up the movie for major distribution.[11] In 2008, the DVD ended up at DreamWorks and was viewed by Production Executive Ashley Brooks. Brooks was so impressed by the movie that she "pestered" her boss, Production Chief Adam Goodman, every day to see the film until he eventually saw it. Goodman, in turn, brought it to his boss, Studio Chief Stacey Snider. They were impressed by the film as well and handed the DVD to Steven Spielberg, who took it home to watch.[11]
Spielberg allegedly returned to DreamWorks the next day with the DVD in a "garbage bag" because he thought the DVD was "haunted". According to Spielberg, minutes after he viewed the film, his bedroom doors "locked by themselves" and he could not get out without calling in a locksmith.[11][14] Despite this, Spielberg loved the movie and helped to greenlight a remake to be produced by Jason Blum and directed by Oren Peli again. Paramount acquired the domestic rights to the film, and international rights to potential sequels, for $300,000 USD.[15] "They didn't know what to do with [the movie]," Blum stated about the remake, adding that they just wanted to be "in business" with Peli.[11] The original deal for the movie stipulated that Oren Peli would direct and that the DVD would have the original film included with it so the public would get an idea of what the original film was about. However, during contract negotiations, Blum and Peli negotiated a one-time screening into the contract to see how a real audience would react to the original film. As part of the deal, Adam Goodman invited several screenwriters to the screening so that they could get an idea about what to write and see what should be added and subtracted to the remake's script.[11]
At the screening, people began walking out - Goodman was afraid that he made the wrong decision and that the screening was a bomb until he learned (in a twist reminiscent of the famous screening of 1979's Alien) that the viewers were actually truly frightened by the film and were leaving for that reason. It was at this point that Goodman canned all thoughts of a Hollywood remake and decided to release Peli's version of the film.[11] The film was supposed to be released in 2008 but was delayed further because of the rift between DreamWorks and Paramount Pictures. While the movie was stuck in limbo, Oren Peli and Jason Blum screened the film for international buyers at a theater in Santa Monica along with a sold-out crowd mostly of teenagers. This further cemented the film's reputation and Peli and Blum sold the international rights to 52 different countries.[11] The buzz generated by this and the positive word-of-mouth finally pushed Adam Goodman (who took over as Paramount's main exec) to release the film on the fall schedule.[11]
http://en.wikipedia.org/wiki/Paranormal_Activity_(film)