In the FOXlight: 'Paranormal Activity' and 'Insidious' Producer Jason Blum Makes Movie Magic on a Tiny Budget

If you've been scared senseless by a movie in the last few years, chances are Jason Blum had something to do with it.

Blum's company, Blumhouse Productions, is quickly becoming Hollywood's hottest facility for turning out hit horror flicks (including "Sinister," "Insidious" and "Paranormal Activity") and award winning movies and documentaries ("Whiplash," HBO's "The Jinx") all on relatively tiny budgets.

How does he do it? FOX entertainment correspondent Michael Tammero headed to Blum's studios to find out how the mega-producer makes his movie magic.

"Almost everything we do is under $5 million dollars; that's our ceiling on our budgets," says Blum."The actors, the directors, the writers — everyone works for the lowest amount you're allowed to pay, and everyone has a piece of the movie. So if the movie really works, everyone makes a lot of money for working a very short period of time."

Watch the video above for more insight into Blum's production house, as well as a sneak peek at his company's next project: M. Night Shyamalan's "The Visit."