“Paranormal Activity” was hardly a typical studio production. Oren Peli, an Israeli-born video game designer who had no formal film training, shot the $15,000 movie in a week in 2006 with a no-name cast, a crew of several San Diego friends and a hand-held video camera.
But as Steven Spielberg and the DreamWorks team believed, the movie held a special appeal — it was original and scary. The challenge was to fit this round peg into a DreamWorks square hole, a process that would ultimately take more than a year and a half, the delay exacerbated by the slow collapse of Paramount’s acquisition of DreamWorks.
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