After the premiere, Matthew invited James Wan to ride with him in his car. James had recently purchased a luxurious mansion in Beverly Hills, not far from the Horner estate, so they were conveniently headed in the same direction. Matthew used the time to discuss future plans.
"James, have you decided on the next steps?" Matthew asked.
"Pretty much," James replied, clearly in good spirits. "I've talked with the people at Warner Bros. Insidious 2 is set to release next spring, and The Conjuring 2 is already in development. If all goes well, it should hit theaters during next year's Halloween season."
Matthew nodded approvingly, but James elaborated before he could ask another question. "I think we should focus on The Conjuring and Insidious series for now. These two franchises can serve as the foundation before we expand further and build a broader cinematic universe."
"I agree," Matthew said, fully endorsing James's strategy.
A solid start didn't guarantee success, and rushing into expansion could backfire. A flop in one spin-off film could jeopardize the entire universe. By leveraging sequels like Insidious 2 and The Conjuring 2 to attract more fans, they could expand steadily and methodically. Matthew hadn't forgotten the lessons from the failed Justice League universe—haste makes waste.
James continued, "I also have some ideas for new spin-off films."
Matthew's interest was piqued. "Let's hear them."
Even Margot Robbie, seated in the front passenger seat, perked up. She had overheard talk about Matthew planning a horror cinematic universe but was surprised at how quickly it was coming together.
James didn't mince words. "The first step in expanding the universe is to center a story around the Annabelle doll." After a brief pause, he added, "In The Conjuring 2, I plan to introduce a terrifying nun character. If the response to that character is good, we can consider giving her a standalone movie."
Matthew approved of the idea. "Sounds good. Put together a concrete plan. I've said it before, James: the entire universe is yours to oversee."
This level of trust moved James deeply. When he had worked for Lionsgate, there had been endless restrictions and interference, leaving him feeling stifled and unable to fully showcase his talents. Joining Matthew's studio had been a game-changer. He was granted unprecedented support and authority—on par with what Steven Spielberg might receive when working with a major Hollywood studio.
The compensation was also generous. After just two films, James had earned enough to purchase a multi-million-dollar mansion in Beverly Hills. As long as he continued working with Matthew, making tens of millions of dollars seemed entirely within reach.
"James, the horror universe is in your hands," Matthew said, maintaining his usual oversight but fully confident in James's abilities. "I trust you to bring a new dimension to Hollywood's horror films."
To retain top talent, pay raises were inevitable. For The Conjuring 2, the production budget had increased from $15 million to $35 million. Despite the higher budget, the film would still follow the small-scale, intimate production model of the first Conjuring. Most of the increase came from James Wan's rising fees, along with pay raises for Nicolas Cage and Vera Farmiga.
The reality was that no one could keep the core team of a successful film series on the same pay scale as the first installment.
In Hollywood, money ruled everything. Even the most artistic creators had their material and personal aspirations, all of which required funding in today's world.
The Mercedes van entered Beverly Hills and stopped in front of James Wan's recently purchased mansion.
James got out and extended an invitation. "I'm hosting a party at my place in a few days. Will you be able to come, Matthew?"
Matthew, always supportive, replied, "Let me know the time, and I'll be there."
James then turned to Margot Robbie, who was sitting in the front seat. "You're welcome too, Miss Robbie."
Margot smiled graciously. "I'd be honored."
Waving goodbye to the two as they drove off, James headed into his home. He couldn't relax yet; there was still plenty of work ahead. But he didn't feel burdened—this was the career he loved.
Back in the car, Margot glanced over her shoulder at Matthew. "The reviews for The Conjuring on social media are really good. I checked three sites, read dozens of comments—some from fans, some from critics—and I hardly saw any negative feedback."
Matthew smiled. "That's partly due to our excellent marketing. But the film itself is also one of the best horror movies in recent years."
He was also checking his phone, specifically non-marketing-driven reviews.
One fan's comment on Twitter stood out to him:
"The brilliance of The Conjuring lies in how it avoids the usual horror movie tropes of over-the-top sound effects and atmosphere. Instead, it builds terror through clever plotting and pacing. James Wan's skill as a director shines as he masterfully controls the tension in this haunted house tale. The restrained use of visuals and focus on eerie atmosphere makes it genuinely chilling. By the end, it's clear why this 'based on true events' story is so unsettling."
Another widely shared tweet mentioned Matthew himself:
"The Conjuring is fantastic, and no one can deny James Wan's prowess as a horror director. But let's not overlook Matthew Horner, whose keen eye for talent and trust in his collaborators gave James Wan the platform to shine."
Matthew couldn't help but recall how Harvey Weinstein had inadvertently helped him during the process of recruiting James Wan. If Weinstein hadn't essentially detained Wan during Oscar night, Wan might never have fully committed to Matthew's horror universe. It was ironic how Weinstein's meddling had turned into an unexpected assist.
Too bad for Weinstein—his own reckoning was fast approaching.
Not even his Jewish heritage could shield him from the societal tides now surging against him. While being Jewish might have helped his rise in Hollywood, it was far from a get-out-of-jail-free card.
"Is this like Marvel's cinematic universe?" Margot asked, her curiosity piqued.
Matthew nodded. "Our goal is to create a cohesive horror world."
"So, you plan to keep making these horror films indefinitely?" Margot deduced.
Matthew chuckled. "Horror films are the easiest way to turn a small budget into big returns."
In the North American market, horror films had long been a staple for maximizing profits with minimal investment. Hollywood studios, large and small, eagerly produced low-budget horror films because they carried low risk and high rewards.
Everyone knew that low-budget horror films, if well-written and marketed effectively, had a good chance of turning a profit—even achieving impressive box office numbers.
However, the overall market for horror films remained limited. For example, The Conjuring and Insidious were rated R in North America, restricting viewers under 17 from seeing them without parental accompaniment. This naturally limited the audience.
Moreover, Hollywood's low-budget horror films were rarely significant players in overseas markets, which remained dominated by big-budget commercial blockbusters. Horror films were primarily a North American phenomenon.
Even so, horror films' success was often unpredictable. Movies like Insidious, which achieved high returns on investment, were rare.
Matthew had previously conducted market research and found that the average return on investment for horror films was 67%, far less than that of major commercial productions.
While horror films offered a reliable niche, medium and large studios preferred big-budget productions for their ability to ensure cash flow.
Matthew's studio, much smaller than the big six, thrived on low-budget, high-return projects. He was essentially exploiting a gap in the market.
As Hollywood increasingly pursued globalization, it sometimes overlooked the traditional North American market. Large studios favored global commercial films, relying on overseas success to mitigate risks. This often led to an emphasis on sequels and remakes as safer bets.
In contrast, low-budget horror films catered to domestic audiences, making them an effective way to capture the North American market's preferences. This allowed them to stand out and draw local audiences.
Back in the car, Matthew reflected on the limited but lucrative nature of horror films. The Conjuring had proven this point. On its opening day alone, the movie grossed $16.95 million, effortlessly surpassing its production budget.
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