Many independent films are made on low budgets, but films made on the mainstream circuit with inexperienced or unknown filmmakers can also have low budgets. Many young or first-time filmmakers shoot low-budget films to prove their talent before working on larger productions. Most low-budget films that do not gain some form of attention or acclaim are never released in theatres and are often sent straight to retail due to their lack of marketability, look, narrative story, or premise. No precise number defines a low-budget production, and it is relative to both genre and country. What might be a low-budget film in one country may be a big budget in another. Modern-day young filmmakers rely on film festivals for pre-promotion. They use this to gain acclaim and attention for their films, which often leads to a limited release in theatres. Films that acquire a cult following may be given a wide release. Low-budget films can be either professional productions or amateur. They are either shot using professional or consumer-grade equipment.


Some genres are more conducive to low-budget filmmaking than others. Horror films are a very popular genre for low-budget directorial debuts. Jeremy Gardner, director of The Battery says that horror fans are more attracted to how the films affect them than seeing movie stars. This allows horror films to focus more on provoking a reaction than on expensive casting choices. Thriller films are also a popular choice for low-budget films, as they focus on narrative. Science fiction films, which were once the domain of B movies, frequently require a big budget to accommodate their special effects, but low-cost do-it-yourself computer-generated imagery can make them affordable, especially when they focus on story and characterization. Plot devices like shooting as found footage can lower production costs, and scripts that rely on extended dialogue, such as Reservoir Dogs or Sex, Lies, and Videotape, can entertain audiences without many sets.^[1]


The money flow in filmmaking is a unique system because of the uncertainty of demand. The makers of the film do not know how well the film they release will be received. They may predict a film will do very well and pay back the cost of production but only get a portion back. Or the opposite may happen where a project that few think will go far can bring in more profit than imaginable. A big gambling variable that is also involved is the use of stars. Frequently stars are brought on to a project to gain the film publicity and fame. This process can be profitable, but it is not a foolproof mechanism to successful funding.^[2] Well-known actors may join a low-budget film for a portion of the gross.^[3]

Academic research on low-budget film production (economic)[edit]

Only a small amount of academic research has been conducted on the economic impact of low-budget feature-film production. Two studies conducted from a British perspective includes Steve Chibnall's Quota Quickies: The Birth of the British 'B' Film^[50] and JC Crissey's doctoral thesis The UK low-budget film sector during the 'digital revolution' between 2000 and 2012: a quantitative assessment of its technological, economic and cultural characteristics.^[51]

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