Why We Need to Talk About Horror and the Brazilian Market

In an industry constantly searching for predictability, horror has emerged as one of the most commercially efficient genres. While Halloween provides the perfect launch window for many releases, it only reinforces a much broader trend: audiences' appetite for monsters, demons, ghosts, and zombies now extends year-round across theaters, streaming platforms, and digital media. But what is really driving this phenomenon?

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THE PLEASURE OF FEAR

Let's begin with a compelling question:

Why are we so drawn to fear?

The answer lies deep within human psychology. A growing body of research has explored why horror fascinates us and why it remains such a powerful form of entertainment. In Why Horror Seduces, Mathias Clasen examines the genre through the lens of neuroscience, arguing that frightening stories activate ancient and deeply preserved neurobiological mechanisms. Exposure—or even the anticipation—of terrifying events can trigger opposite emotional responses: negative ones, such as fear and anxiety, but also positive ones, including excitement, pleasure, and exhilaration.

We are attracted to horror because humans have an adaptive tendency to enjoy simulated danger. Fiction allows us to experience intense negative emotions within a safe environment, creating a unique psychological reward. As we emerge from a frightening experience unharmed—often accompanied by a satisfying resolution—our brains release dopamine, adrenaline, and endorphins, transforming fear into pleasure.

Another reason we seek horror is our desire for novelty and emotional intensity. These stories invite us to confront humanity's darkest impulses through fictional characters, offering both psychological exploration and thrilling entertainment. This appetite for intense emotional experiences is especially pronounced among younger audiences.

An article published by the Harvard Business Review, The Psychology Behind Why We Love (or Hate) Horror, highlights an important demographic pattern: younger people are, on average, significantly more attracted to horror than older generations. At this stage of life, individuals are naturally inclined to test boundaries, seek novelty, and embrace emotionally charged experiences. The appeal is not unlike riding a roller coaster—an opportunity to experience danger without real-world consequences.

The same trend appears in industry data. A 2023 study by Parrot Analytics found that Millennials account for the strongest global demand for horror content. For producers, distributors, and streaming platforms, this reinforces the importance of developing marketing strategies that resonate with digitally native audiences, particularly across social media and online communities where horror fandom thrives.

THE GENRE'S REINVENTION

If there is one genre built on proven formulas, it is horror. The recipe is familiar: teenagers in an isolated cabin, exorcisms, cursed games, sinister nuns, extraterrestrial monsters, zombies, and malevolent spirits. Time and again, these stories prove that certain fears remain universally effective.

Yet horror is also remarkably adaptable. Every generation reinvents the genre by finding new ways to unsettle audiences. After the era of graphic violence popularized by Saw and its many successors, a new wave of so-called post-horror shifted the focus from shock value to psychological unease, earning both critical acclaim and strong audience engagement.

Instead of relying on gore and bloodshed, the genre embraced atmosphere, tension, and emotional discomfort. This creative shift coincided with the rise of A24, whose films—such as The Witch—redefined what modern horror could be. Their success demonstrated that sophisticated storytelling, psychological depth, and artistic ambition could coexist with commercial appeal.

As is often the case in entertainment, successful formulas inspire new interpretations. The resurgence of psychological horror has sparked a broader creative renewal, bringing greater boldness to the genre while strengthening its connection with younger audiences who increasingly seek immersive, emotionally complex experiences rather than conventional jump scares.

A BUSINESS PERSPECTIVE

For the entertainment industry, the resurgence of horror is no longer a trend—it is an established market reality. In the world's largest entertainment market, the United States, horror ranks among the most in-demand genres. According to Parrot Analytics, it is the fourth most popular genre in terms of audience demand and engagement. Other industry research, including Statista, places horror among the top five most popular genres. It is no coincidence that many of the industry's most influential production companies in recent years—such as A24 and Blumhouse—have emerged from this market.

The streaming ecosystem further highlights the genre's commercial strength. According to Nielsen, by 2023 streaming platforms collectively offered approximately 1.1 million exclusive horror titles, reflecting both the scale of consumer demand and the growing investment in the category.

The audience numbers tell the same story. Netflix's The Fall of the House of Usher became one of the platform's standout horror releases in 2023, generating 223 million hours viewed, according to FlixPatrol. Meanwhile, The Walking Dead remains the most successful horror television franchise of all time in cumulative viewing. Its long-running popularity demonstrates the genre's exceptional ability not only to attract audiences but also to sustain engagement over multiple seasons and years.

Taken together, these indicators reveal that horror is far more than a seasonal phenomenon. It is one of the industry's most resilient genres, capable of consistently generating audience demand, building loyal fan communities, and delivering long-term commercial value across theatrical releases, streaming platforms, and the broader entertainment ecosystem.

In 2023, the 55 horror films released in the U.S. accounted for roughly 10% of the nearly US$9 billion generated at the domestic box office. Yet the genre's greatest strength is not producing billion-dollar blockbusters—it's delivering consistently high returns with relatively modest investments. The highest-grossing horror film of the year, Blumhouse's Five Nights at Freddy's, earned approximately US$300 million worldwide against a production budget of just US$36 million, representing a production-budget ROI of roughly 8.3x. Even after accounting for marketing and distribution costs, the film remained an exceptionally profitable investment.

There is nothing mysterious about this business model. Horror's economics are remarkably straightforward. The genre thrives on strong concepts, atmosphere, and suspense rather than expensive visual effects or A-list stars. Success depends less on production scale than on execution.

Equally important is the genre's uniquely loyal fan base. Horror audiences actively seek out new releases, champion independent productions, and generate sustained word-of-mouth through online communities. As a result, even relatively small productions can achieve significant commercial success when they resonate with their target audience.

This efficiency is reflected across the industry. According to The Movie Dataset, horror delivers the highest average return on investment of any film genre, with an average ROI of 173% relative to production costs. In an industry where financial predictability is increasingly difficult to achieve, horror stands out as one of cinema's most resilient and economically efficient business models.

The numbers become even more compelling when viewed over the long term. Of the 50 most profitable films in cinema history, 16 are horror titles—more than any other genre. Two of the genre's defining classics, The Blair Witch Project and Paranormal Activity, hold the highest ROI percentages ever recorded in the film industry, demonstrating how modest budgets can generate extraordinary financial returns. The conclusion is clear: horror has consistently outperformed expectations as one of the most efficient business models in filmmaking.

According to research presented by the American Film Market (AFM), the genre's exceptional profitability has encouraged producers, financiers, and studios to invest in horror with increasing frequency. As the economics continue to prove favorable—and global audiences remain highly engaged—there is little indication that this production trend will slow anytime soon.

BRAZIL & HORROR

Brazil offers further evidence of horror's commercial potential. The Nun, part of The Conjuring Universe from New Line Cinema and produced by James Wan, became the highest-grossing horror film in Brazilian box office history, earning approximately R$63 million in theatrical revenue. Its performance at the box office was only the beginning of its commercial lifecycle.

As is typical for major horror franchises, the film likely generated substantial value across multiple distribution windows—including free-to-air television, pay TV, streaming services, and transactional video-on-demand (TVOD). While comprehensive performance data across these secondary windows is not publicly available, the strength and longevity of The Conjuring franchise strongly suggest that its overall lifetime value extended far beyond theatrical exhibition.

This illustrates an important characteristic of horror IPs: successful titles rarely depend on a single revenue stream. Instead, they tend to perform consistently across the entire content value chain, reinforcing the genre's ability to generate long-term returns through multiple licensing and distribution opportunities.

In 2023, the combined Brazilian box office revenue generated by horror films and related subgenres is estimated at approximately R$300 million—nearly three times the total theatrical revenue earned by Brazilian films during the same period.

Further evidence of the genre’s relevance in Brazil comes from a recent case study published by Parrot Analytics. According to the company’s demand-measurement methodology, audience demand for horror in the country exceeds the available supply, indicating a clear opportunity for new content. Over the past four years, average demand for the genre has remained consistently strong, reinforcing the idea that Brazil is not an isolated market, but part of a broader global trend. For producers, distributors, and platforms, the data suggests an underserved audience with significant potential for consumption, engagement and growth.

A closer look at horror subgenres reveals another interesting trend. Over the past two years, Brazilian audiences have shown growing engagement with stories centered on monsters, apocalyptic scenarios, and demonic themes.

This evolution closely mirrors global viewing patterns, driven by the success of internationally recognized franchises and series such as The Walking Dead and Stranger Things, alongside the continued popularity of supernatural and exorcism films. As global hits shape audience expectations, Brazilian viewers have increasingly embraced these same narrative archetypes, reinforcing the country's alignment with worldwide horror consumption trends.

For content creators and investors, this represents more than a preference for a specific genre—it provides valuable insight into which themes are most likely to resonate with local audiences while maintaining strong international appeal.

THE WHITE SPACE OPPORTUNITY

When it comes to domestic production, Brazil presents one of the clearest market gaps in the global horror landscape. There is a significant imbalance between audience demand and the volume of locally produced horror films and series.

While several structural factors have historically limited the development of the genre in Brazil, this imbalance also represents a compelling business opportunity. An underserved audience signals room for new intellectual properties capable of meeting both local demand and international expectations. According to another analysis by Parrot Analytics, which compared the world's 20 largest horror-consuming markets between January and June 2024, Brazil ranked as the fifth-highest market in audience demand. Yet, in terms of domestic horror production, the country ranked only 16th among those same markets.

This disparity highlights a substantial white space in the Brazilian audiovisual industry. Demand already exists, audiences are highly engaged, but the local supply remains limited. For producers, investors, and distributors, this creates a rare opportunity to develop original Brazilian horror IPs in a market where consumer appetite significantly outpaces available local content.

WHY HASN'T BRAZIL CAPTURED THIS OPPORTUNITY?

If the demand is so evident, why hasn't the Brazilian audiovisual industry embraced horror on a larger scale?

Over the years, I have asked this question to many senior executives across the industry. The responses were remarkably consistent: "Brazil doesn't know how to make horror." "Horror has never been part of the country's audiovisual tradition." "Brazilian audiences don't buy the idea of soap opera actors starring in horror films."

These views—shaped largely by the country's television-driven industry and commercial conventions—reflect a widespread perception. Yet they tell only part of the story.

Brazil already has a vibrant independent horror scene, with filmmakers whose work has earned recognition at international festivals. The country is also home to one of horror cinema's most influential cult figures, José Mojica Marins, better known as Coffin Joe (Zé do Caixão), whose legacy continues to inspire filmmakers around the world.

The real question, therefore, is not whether Brazil can produce horror—it already does. The challenge is how to transform isolated creative successes into a sustainable commercial ecosystem capable of serving both domestic and international audiences. In an increasingly globalized entertainment industry, importing expertise should not be viewed as a weakness, but as a strategic shortcut. International partnerships, creative collaboration, and access to proven production models can accelerate the learning curve, reduce execution risk, and enable Brazilian producers to capitalize on one of the country's most significant white space opportunities in the global content market.

Encouragingly, Brazil is beginning to move in this direction. A recent example is Abraço de Mãe, produced by Lupa Filmes and starring Marjorie Estiano. Recognizing the value of international expertise, producers André Pereira and Mariana Muniz brought Argentine filmmaker Cristian Ponce to direct the feature. Ponce had previously gained international recognition with the cosmic horror thriller History of the Occult (Historia de lo Oculto), which developed a strong following among horror audiences on Netflix.

The project illustrates an important strategic shift: rather than treating horror as an isolated experiment, producers are increasingly combining Brazilian storytelling with international creative know-how. Lupa Filmes had already demonstrated its interest in the genre with the acclaimed thriller O Rastro, suggesting a long-term commitment to building expertise in this space.

This is precisely where the opportunity lies: high audience demand combined with relatively few competitors. Countries that share important characteristics with Brazil's storytelling tradition—particularly a strong foundation in melodrama—have adapted to this shift with remarkable speed. Spain, Mexico, and Argentina have all emerged as important players in contemporary horror, producing internationally recognized films and filmmakers such as Guillermo del Toro, Demián Rugna, and J.A. Bayona. Their success demonstrates that culturally rooted storytelling can coexist with globally appealing genre filmmaking.

AUDIENCE FIRST

Ultimately, the most important factor is the audience.

Parrot Analytics' research confirms that Brazil closely mirrors global consumption patterns. The country's core horror audience is overwhelmingly composed of men between the ages of 15 and 41, a demographic that actively consumes both contemporary releases and genre classics. This audience is highly engaged, digitally connected, and deeply familiar with the conventions of horror. They move seamlessly between theatrical releases, streaming platforms, YouTube creators, gaming, and online fan communities. For producers, the implication is clear: success is less about introducing audiences to horror than about delivering high-quality stories that meet the expectations of an audience that already knows—and actively seeks out—the genre.

It is becoming increasingly important for producers to view the audience as an integral part of the creative process—not as a constraint on artistic vision, but as a source of strategic insight. Particularly when targeting younger audiences, understanding casting choices, cultural references, audience behavior, and consumption patterns has become an essential discipline, especially when paired with an effective marketing strategy.

Few films illustrate this better than The Blair Witch Project. Beyond its groundbreaking storytelling, the film revolutionized audience engagement through one of the most influential marketing campaigns in cinema history. It remains a benchmark for anyone seeking to build horror IPs with limited resources and maximum cultural impact.

In Brazil, distributor Diamond Films has demonstrated the power of this approach. Its campaign for the Australian horror hit Talk to Me successfully expanded the film's reach beyond dedicated horror fans, engaging broader pop culture communities and turning the release into one of the country's most notable genre success stories.

This is where the real opportunity lies: finding the connection between story, talent, and audience.

Brazil has already produced compelling examples. Desalma (Globo) and The Forgotten Valley (O Vale dos Esquecidos) (HBO) successfully incorporated many of the core ingredients of contemporary horror—from atmosphere and mythology to sophisticated production values and thoughtful marketing. What was missing?

In my view, very little.

What Brazil needs is not a radically different formula, but more volume. More projects. More experimentation. More creative risk-taking. Like every mature genre industry, horror evolves through continuous iteration—testing ideas, learning from audiences, refining the craft, and building expertise over time. The market already exists. The challenge now is to produce enough stories for that ecosystem to flourish.

Unfortunately, today's entertainment industry is increasingly risk-averse—particularly in television and streaming. In this environment, one essential variable is often overlooked: time. Building a successful genre ecosystem requires experimentation, iteration, and the willingness to accept failures before discovering the projects that truly resonate with audiences.

A personal observation: At times, it feels as though horror still faces a degree of institutional bias among decision-makers. Given the available demand data and the genre's comparatively favorable risk profile, this may represent a strategic miscalculation. Whether that perception is accurate is open to debate—but perhaps that conversation is better reserved for after hours.

CONCLUSION

As we have seen, the human attraction to fear is deeply rooted in psychology. While horror is not a genre for everyone, the audience that embraces it has long outgrown niche status. Today, horror is undeniably part of mainstream global entertainment.

From a business perspective, this is encouraging. Horror has consistently demonstrated its ability to deliver strong financial performance—particularly with modest production budgets—making it one of the industry's most efficient genres. At a time when producers and investors are under increasing pressure to maximize returns, horror offers a compelling combination of creative flexibility and commercial resilience.

Brazil, in particular, presents an especially attractive opportunity. Audience demand is substantial and continues to grow, especially among younger viewers seeking immersive, highly engaging stories. Yet domestic production remains significantly below that level of demand.

The challenge is not the audience—it is the ecosystem.

Brazilian horror is still navigating a learning curve within an industry traditionally shaped by conservative commissioning models and limited tolerance for experimentation. Accelerating that learning process through international collaboration, co-productions, and the exchange of creative know-how may prove to be the fastest path toward building a sustainable genre industry.

Ultimately, I believe the next wave of Brazilian horror will emerge from independent creators operating within a truly global entertainment ecosystem—one that prioritizes audience engagement, digital communities, and scalable intellectual properties. When Brazilian storytellers find the formula that authentically connects local identity with universal genre conventions, they will not be speaking only to Brazilian audiences.

They will be speaking to the global community of horror fans. That, perhaps, is Brazil's greatest untapped opportunity.

FELIPE HERZ BOCLIN