Blumhouse Productions founder Jason Blum talks with Recode's Peter Kafka about making horror movies with directors such as M. Night Shyamalan and Jordan Peele. Blumhouse promises those filmmakers total creative control over movies like "Insidious," "The Purge" and "Split" in exchange for lower budgets. Blum calls his studio an "outsider in the Hollywood system," with a model that most other studios have struggled to replicate. Horror works better than other genres, he says, because you don't need big stars or big budgets to succeed.

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