Box Office: ‘Paranormal 2’ Looks for Scary $33M+

It's never a bad day for Paramount when Oren Peli shows up with a video camera

This weekend, the filmmaker behind last year's micro-budgeted horror phenomenon is back with "Paranormal Activity 2," which is tracking to win the domestic box office with a debut well into the $30-million-plus range.

"There's tremendous heat on this movie," said one rival-studio executive. "I hear it works."

Considering it was shot on a $3 million budget, Paramount has reason to be euphoric about the whole scary, R-rated enterprise.

"PN 2," which surprised sneak-preview audiences Wednesday night by being a prequel, has writer-producer Peli turning over the director's reigns to Tod Williams (2004's "The Door in the Floor"). Star Katie Featherston returns as the woman the demons seem to dig.

And more good news for the studio? Another low-budget Paramount film, last week's $50.4 million box-office champion, "Jackass 3D," is on pace to finish in second place.

Warner's Clint Eastwood-directed "Hereafter," which debuted to a soft $289,000 at six locations last weekend, is expected to bring in around $10 million as it expands to 2,181 North American theaters this weekend, but no other film opens wide.

While both Paramount releases skew young, studio distribution G.M. Don Harris said "young females are the main driver for 'Paranormal Activity,' while young males drive 'Jackass.'"

In any event, he added that Paramount has been dead set on releasing its "Paranormal" follow-up the weekend before Halloween.

And who can argue with its rationale. It was this weekend last year that the original culminated a rather extraordinary slow expansion, opening wide in 1,945 theaters and grossing $21.1 million.

Peli's homemade horror film — shot on a budget of around $15,000 before studio sweetening and championed by Paramount production chief Adam Goodman — took it to Lionsgate's established "Saw" franchise, with "Saw VI" grossing just $14.1 million.

The two movies are set to go head-to-head again next weekend, when Lionsgate brings back its seventh and final "Saw" in 3D.

As for this weekend, the only real competition will be for third place, with Summit's action-comedy ensemble film "Red," coming off a $21.8 million opening weekend, likely edging out "Hereafter."

With a cast that includes Bruce Willis, Morgan Freeman, John Malkovich and Helen Mirren, "Red" is targeted to a 35-plus audience — a demographic, Summit believes, that doesn't rush out to see movies the first weekend and thus renders longer-term playability.

In other words, Summit is hoping for a week-to-week decline of less than 50 percent this weekend.