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Paranormal Activity premiered at Screamfest Film Festival in North America on October 14, 2007, and was shown at the Slamdance Film Festival on January 18, 2008. It received a limited U.S. release on September 25, 2009 and nationwide release on October 16, 2009. The film earned nearly $108 million at the U.S. box office and $194 million worldwide.Paramount/DreamWorks acquired the U.S. rights for $350,000.
It is one of the most profitable movies ever made, based on return on investment,although such figures are difficult to verify independently and are likely to exclude marketing costs
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Katie (Katie Featherston) and her boyfriend, Micah (Micah Sloat), are a young couple who recently moved into a two-story tract house in suburban San Diego, California. Katie claims that a ghostly presence has haunted her since her youth and believes that it has followed her to their new home. She hires a psychic, Dr. Fredrichs (Mark Fredrichs), who assesses that she is being haunted not by a ghost, but by a demon. He says the demon feeds off negative energy, and its intent is to haunt and torment Katie no matter where she goes. Before leaving, he advises them not to taunt or communicate with the demon, and to contact demonologist Dr. Johan Averies for help. Instead, each night, Micah mounts a video camera on a tripod in their bedroom to record any paranormal activity that might occur while they sleep in the hopes of solving the problem himself.
The camera manages to capture several supernatural phenomena which remain minor at first, including the bedroom door moving by itself, and the sound of rapid footsteps downstairs. As Micah consistently taunts the demon, the phenomena gradually grow worse, including loud bangs and inhuman noises reverberating from deep within the house. One night, Katie awakens to spend several hours standing by the bed staring at Micah while he sleeps and goes outside to sit on the backyard swing, none of which she remembers the following morning. Katie, already irritated by Micah's flippant response to the situation, becomes irate when Micah brings home a ouija board despite Dr. Fredrichs' warnings. While the two are out of the house, the Ouija board's planchette moves on its own and a small fire erupts on the board, extinguishing itself moments later. The next night, Micah sprinkles talcum powder in the hallway and later the couple finds non-human footprints leading to the bedroom from the attic. In the attic, Micah finds a burnt photograph of a young Katie, which was previously thought to have been destroyed in a house fire.
The morning after a particularly intense haunting, a loud bang is heard and they discover the glass over a photo of them has been smashed with Micah's image scratched underneath. Dr. Averies is abroad when Micah finally agrees to invite him, so Dr. Fredrichs comes instead. Upon his arrival, Dr. Fredrichs immediately has a sense of dread. He apologetically leaves despite their pleas for his help, stating that his presence is only making the demon angry. Two nights later, Katie is dragged out of bed and down the hallway by an invisible force. Hearing her screams, Micah gives chase and seizes her back; the next morning they discover a gruesome bite mark on her back. Stressed and exhausted, the couple decide to go to a hotel. Later, Micah finds Katie gripping a crucifix so tightly that it bloodies her palm. Micah, angry at a situation he cannot control, burns the crucifix and the picture found in the attic. Just as Micah is set to leave, a suddenly calm Katie insists they remain at the house, claiming that they're "going to be okay now", her voice speaking dually with the demon's voice.
The film ends with an ending title card stating that Micah's body was discovered a few days later by the police, and Katie's whereabouts remain unknown.
