1999 Horror Film's Unlikely Success Still Sparking Cast Drama 27 Years Later
When The Blair Witch Project first landed in theaters on this day back in 1999, nobody could have anticipated how much of a smash hit it would be.
Made on a budget of just $35,000, the movie went on to scare up $248.6 million at the box office, making it one of the most successful independent films of all time.
The film's stars, however, have been very candid in the years since its release about just how little of that total haul they saw, as they struggled to make ends meet even after its success.
‘Blair Witch' Bonanza
In the summer of 1999, The Blair Witch Project was a pop culture phenomenon. Initially promoted to the public as a documentary, many went into the theaters believing the haunted happenings they were seeing on screen were real and not a work of fiction.
The film follows the purported final moments of three film students-Heather Donahue, Michael Williams, and Joshua Leonard-as they make a doc about the titular Blair Witch in the woods of Maryland.
While the three stars were, in fact, actors, the movie itself and promotional materials used their real names. The trio went into hiding ahead of the film's release, as a website about their "disappearance" was used to push the movie, claiming they were "missing" or "presumed dead."
It was a pretty genius marketing campaign and one of the first to utilize the internet in a unique, viral way. The strategy also paid off big-time, with strong word-of-mouth leading to even bigger box office returns. For better or worse, it also made its three stars very famous, very quickly.
Compensation Controversy
According to a 2024 interview with the movie's three stars, who also filmed and operated the sound equipment, they were given $500 a week for the incredibly low-budget production. In total, they reportedly earned $1,000 each.
Though they claim they were initially told the movie would include 10 minutes of footage they shot, the filmmakers later decided to make an entire film from it. When the movie later became a box office success, breaking $100 million in the U.S., the actors were allegedly thanked with a fruit basket.
"That was when it became clear that, wow, we were not going to get anything," Donahue told Variety in 2024. "We were being cut out of something that we were intimately involved with creating."
They did, however, receive a "performance bump" in what Variety said was the "low five figures" later that summer.
"I had an interview with The Philadelphia Inquirer where I said something like, I'm the poorest famous person in America right now," Donahue recalled. "Artisan reached out to tell me I can't say that."
Added Williams: "You're in the most successful independent movie of all time, and you can't take care of your loved ones."
When the studio, Artisan, included footage of the three in the 2000 sequel, Book of Shadows: Blair Witch 2, without their knowledge, they sued. In 2004, the studio and actors reportedly reached a settlement resulting in $300K payments to each of them.
New Reboot, New Drama
In 2024, Lionsgate and Blumhouse announced plans to reboot the franchise again, something which took the three actors by surprise.
Donahue, Williams, and Leonard issued a public statement to Lionsgate at the time, asking for "retroactive and future residual payments" for their acting services in the original film, "equivalent to the sum that would've been allotted through SAG-AFTRA, had we had proper union or legal representation when the film was made."
They also asked for "meaningful consultation" on any future Blair Witch projects, assuming that their names and/or likenesses will be used for promotional purposes. They noted that their involvement could be the studio's "single greatest, yet thus-far-un-utilized secret weapon."
Lastly, they asked for an annual $60K grant to be established for first-time filmmakers.
There wasn't much movement on the reboot until earlier this year, when Dylan Clark was announced as the director. At the time, the studio confirmed Leonard and Williams would also return as executive producers.
Donahue, however, made it clear she would not be involved.
"I was offered an agreement that, for me personally, raised difficult long-term questions about rights, future technological use of identity and voice, the ability to speak freely, and compensation," she said on Facebook. "Ultimately, it just wasn't something I felt comfortable signing. I genuinely wish everyone involved well. But preserving my autonomy mattered more to me."
The new movie will reportedly shoot this fall.
This story was originally published by Men's Journal on Jul 14, 2026, where it first appeared in the Entertainment section. Add Men's Journal as a Preferred Source by clicking here.
2026 The Arena Group Holdings, Inc. All rights reserved.
This story was originally published July 14, 2026 at 8:00 AM.