WHAT WENT WRONG

The Blair Witch Project

October 20, 2025

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  • The production of *The Blair Witch Project* relied heavily on improvisation, low-budget resourcefulness, and an unprecedented, highly effective viral marketing campaign that blurred the lines between fiction and reality. 
  • The directors, Daniel Myrick and Eduardo Sanchez, intentionally avoided showing the monster and ceded significant creative control to the unknown actors, which resulted in authentic performances and character dynamics that were often genuinely hostile. 
  • Despite the film's massive financial success, the three lead actors, who signed a deal memo granting them minimal profit participation, were notoriously underpaid and struggled financially immediately following the release. 
  • The actors of *The Blair Witch Project* were severely undercompensated by Artisan Entertainment, receiving only small performance bumps (around \$10k-\$20k) despite the film grossing over \$100 million, highlighting a major capital versus labor conflict. 
  • The actors faced professional repercussions for continuing their careers, being reprimanded for working on other projects under the pretense that they were supposed to be 'dead' as part of the film's viral marketing. 
  • Lionsgate continued to exploit the actors' likenesses in subsequent sequels like *Blair Witch 2: Book of Shadows* and the 2016 *Blair Witch* without their consent or compensation, leading to protracted legal battles for residual payments. 
  • Heather Donahue legally changed her name to Ray Hance due to the negative impact of using her real name in *The Blair Witch Project*, and her performance audio was later used in the 2022 film *Tár* without her involvement or compensation from Lionsgate. 

Segments

Podcast Introduction and Hosts
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(00:00:01)
  • Key Takeaway: Introduction to the hosts, Amy Nicholson and Paul Scheer, and their podcast ‘Unschooled’.
  • Summary: Amy Nicholson and Paul Scheer introduce themselves and their podcast ‘Unschooled’, which discusses good movies, critical hits, and fan favorites.
Sponsor Read: Rakuten
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(00:00:31)
  • Key Takeaway: Advertisement for Rakuten offering cash back on shopping.
  • Summary: A commercial break promoting Rakuten, detailing how shoppers can earn cash back at various stores.
Welcome to What Went Wrong
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(00:01:41)
  • Key Takeaway: Hosts Chris Winterbauer and Lizzy Bassett welcome listeners to the ‘What Went Wrong Special Spooky Months’ episode on ‘The Blair Witch Project’.
  • Summary: Chris and Lizzy introduce the episode focusing on ‘The Blair Witch Project’, praising it as a seminal classic of the found footage genre that holds up well.
Camping Anecdote and Disorientation
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(00:02:22)
  • Key Takeaway: A personal story about getting lost in the woods highlights the disorienting nature of the environment.
  • Summary: Chris and Lizzy discuss a recent camping trip where they got lost, emphasizing how terrifying and disorienting the woods are at night, connecting this to the film’s setting.
First Impressions of The Blair Witch Project
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(00:03:46)
  • Key Takeaway: Chris shares his evolving appreciation for the film’s character development and restraint upon rewatching.
  • Summary: Chris discusses seeing ‘The Blair Witch Project’ as a child versus rewatching it after working in Hollywood, noting his increased appreciation for its character development and tension.
Found Footage Genre Discussion
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(00:05:05)
  • Key Takeaway: The film is praised for being genuinely scary and mature, unlike later, more schlocky found footage entries.
  • Summary: The hosts agree the film is phenomenal and unlike anything before or after it in the genre, focusing on its assured, mature approach to horror.
Basic Film Information
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(00:08:51)
  • Key Takeaway: Key production details, budget estimates, directors, stars, and release date are provided.
  • Summary: Basic information is shared: extremely low budget ($35k-$60k), directed by Daniel Myrick and Eduardo Sanchez, starring the actors by their real names, released July 30th, 1999, rated R (though hosts feel it’s PG-13).
Defining Found Footage Format
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(00:10:38)
  • Key Takeaway: The structural conceit of found footage is defined, tracing its roots back to Orson Welles’ ‘War of the Worlds’.
  • Summary: Chris explains the found footage conceit. Lizzy notes that while ‘The Blair Witch Project’ popularized it, the format has earlier origins, including the 1938 ‘War of the Worlds’ radio broadcast.
Directors’ Backgrounds and Influences
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(00:13:56)
  • Key Takeaway: The directors, Myrick and Sanchez, were drawn to cryptids and formats that played with reality, like ‘In Search Of’.
  • Summary: The backgrounds of Myrick (fascinated by cryptids) and Sanchez (camping in Shenandoah) are detailed. They bonded over disliking slashers and being scared by things like the Patterson Gimlin film.
Early Iterations and Budget Constraints
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(00:17:50)
  • Key Takeaway: Budget limitations heavily influenced the film’s evolution, leading them away from monster effects toward psychological horror.
  • Summary: The film evolved from a haunted house concept to its final form. They moved the setting to the 90s to avoid period piece costs and abandoned monster effects due to expense, drawing inspiration from the Salem Witch Trials and Bermuda Triangle.
Casting Unknown Actors
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(00:21:45)
  • Key Takeaway: The need for improvisation and low budget led to an open call for unknown actors, who were paid minimally.
  • Summary: The casting breakdown sought natural-looking actors for challenging, improvisational roles. The actors were paid about $1,000 total for their work.
Heather Donahue’s Audition and Role
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(00:24:30)
  • Key Takeaway: Heather Donahue impressed the directors with her immediate commitment to character, leading to her male-coded role.
  • Summary: Heather’s response during the audition (parole question) stood out. Her character was intended to be a no-nonsense filmmaker, leading to real conflict with Josh during the shoot.
Filming Logistics and Actor Pay
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(00:27:06)
  • Key Takeaway: The actors signed away rights for minimal profit participation, unaware their footage would form the entire film.
  • Summary: The directors used personal funds and small investments. The actors signed a deal memo promising 1% participation over $1 million profit, and were told their footage would only be 10-15 minutes of the final film.
Immersive Shooting Style
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(00:31:02)
  • Key Takeaway: Producer Greg Hale implemented a highly immersive, POW-camp-style shoot, giving actors significant control.
  • Summary: Hale’s idea was to leave the actors alone, requiring them to shoot everything themselves. GPS was used for tracking, and the directors only interacted minimally, often to stage scares.
The Pivoted Ending and Josh’s Departure
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(00:39:34)
  • Key Takeaway: The planned disappearance of Mike was changed to Josh due to on-set dynamics, leading to a satisfying shift in the remaining duo’s relationship.
  • Summary: Josh was written out of the woods, much to his relief. The pivot forced Mike and Heather into an alliance, which felt natural given their on-set animosity.
The Griggs House Finale
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(00:34:50)
  • Key Takeaway: The final house location was derelict and dangerous, and the ending scene was largely improvised with crew intervention.
  • Summary: The crew found the Griggs house unsafe (graffiti, no rails). Heather and Mike were guided there by radios broadcasting Josh’s voice, and PAs staged the final corner scene.
Sponsor Read: Philo
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(00:42:14)
  • Key Takeaway: Advertisement for Philo streaming service, highlighting its channel lineup and value.
  • Summary: Philo is promoted as an easy way to stream live and on-demand TV, including AMC Plus and Discovery Plus, for $33/month.
Filming Details and Unscripted Moments
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(00:43:29)
  • Key Takeaway: Many iconic elements, like the stick figures and Heather’s monologue, were unscripted, showcasing the actors’ commitment.
  • Summary: The stick figure bundles contained real teeth and hair. Mike kicking the map into the creek and Heather’s famous monologue were completely improvised.
Post-Production and Sundance Cut
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(00:47:08)
  • Key Takeaway: The directors drastically cut the planned documentary elements, making the found footage the entire film, surprising the actors.
  • Summary: The original plan included extensive documentary interviews, but the directors removed over 50% of the film, focusing only on the woods footage, unbeknownst to the actors until just before Sundance.
Viral Marketing Campaign
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(00:48:33)
  • Key Takeaway: ‘The Blair Witch Project’ pioneered viral marketing by using the internet to convince audiences the events were real.
  • Summary: Artisan Entertainment revamped the website to remove any mention of it being a movie, listing the actors as deceased. They also aired a fake documentary on the Sci-Fi Channel.
Box Office Success and Actor Plight
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(00:56:02)
  • Key Takeaway: The marketing was so effective that audiences believed the actors were dead, leading to financial hardship for the stars.
  • Summary: The actors were initially banned from press because they were ‘dead.’ Once the truth emerged, their poverty became conspicuous (Heather’s car breaking down under her own billboard), leading Artisan to reprimand her for speaking out.
Paranormal Activity Actor Earnings
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(00:57:23)
  • Key Takeaway: Katie Featherston of Paranormal Activity made little money initially despite the film’s success, highlighting low-budget film financial realities.
  • Summary: The speaker discusses knowing Katie Featherston from Paranormal Activity and recounts her experience waiting tables shortly after the film’s release, noting that even though the movie was made for only $12,000, the backend checks for profit sharing didn’t clear immediately.
Heather’s ‘Poorest Famous Person’ Comment
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(00:58:06)
  • Key Takeaway: Artisan immediately reprimanded Heather Donahue for publicly stating she was the ‘poorest famous person in America’ due to lack of immediate profit sharing.
  • Summary: Heather Donahue was quoted in the Philadelphia Inquirer as saying she was the ‘poorest famous person in America,’ which Artisan disliked, leading to her reprimand and her publicist being banned from booking further interviews.
Actors Forbidden from Acting
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(00:58:26)
  • Key Takeaway: Joshua Leonard was disciplined for taking another acting role because the premise of The Blair Witch Project required the actors to effectively remain ‘dead.’
  • Summary: Joshua Leonard was ‘slapped on the wrist’ for being cast in another indie film because Artisan felt he was supposed to maintain the illusion of being dead from The Blair Witch Project.
Misogyny and Lack of Credit
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(00:58:38)
  • Key Takeaway: Heather faced misogynistic attacks, and all three actors felt they received no credit for their extensive creative contributions to the film.
  • Summary: Heather received misogynistic attacks, partly because her real name was used in the film. The actors felt they did everything—improvising dialogue, shooting, providing impetus for scenes—but were credited as ‘dead,’ not actors, writers, or directors.
Artisan’s Fruit Basket ‘Reward’
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(00:59:03)
  • Key Takeaway: Despite the film grossing over $100 million, Artisan sent the three main actors only a fruit basket to commemorate the success.
  • Summary: When The Blair Witch Project broke $100 million, Artisan sent Heather, Michael, and Josh fruit baskets instead of profit sharing, leading to outrage from the hosts.
Capital vs. Labor Debate
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(01:00:39)
  • Key Takeaway: The situation exemplifies the capital versus labor debate, where Artisan profited immensely by marketing the labor provided by the actors.
  • Summary: The hosts frame the situation as capital (Artisan) stepping on labor (the actors) to make money, noting that without the actors’ work, the movie wouldn’t exist, but Artisan claimed the value added through marketing.
Actors’ Minimal Performance Bump
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(01:01:05)
  • Key Takeaway: The actors eventually received a small performance bump in the low five figures (estimated $10k-$15k each), which was considered insultingly low.
  • Summary: At the end of the summer, the actors received a performance bump in the low five figures, which was barely enough for Michael C. Williams to afford a slightly better cocktail hour at his wedding.
Artisan Pushes Sequel Without Directors
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(01:01:31)
  • Key Takeaway: Artisan immediately pushed for a sequel, ignoring Sanchez and Myrick’s suggestion for a prequel and rushing production for an October 2000 release.
  • Summary: Artisan wanted a sequel, but Sanchez and Myrick suggested a prequel. Artisan pushed ahead without them, aiming for an unrealistic October 2000 release date, concerned about overexposure.
Unauthorized Use in Blair Witch 2
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(01:02:10)
  • Key Takeaway: The actors were not consulted for Blair Witch 2: Book of Shadows, but their likenesses appeared in the film and promotional material, leading to a lawsuit.
  • Summary: Heather, Josh, and Mike were not approached for Blair Witch 2, but their faces appeared in it. They hired a lawyer to block the release until they were paid for unauthorized appearances.
Blair Witch 2 Box Office Failure
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(01:02:45)
  • Key Takeaway: Blair Witch 2: Book of Shadows was a critical and commercial failure, earning only $47.7 million compared to the original’s $250 million gross.
  • Summary: Blair Witch 2: Book of Shadows received bad reviews and mediocre box office returns. The actors continued their suit for over $4 million each in damages, citing career harm from the confusion.
Directors’ Settlement Over Inflated Costs
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(01:03:27)
  • Key Takeaway: Myrick and Sanchez sued Artisan, suspecting inflated marketing costs were used to reduce their profit share, eventually settling for $25-$40 million.
  • Summary: Myrick and Sanchez were upset that Artisan might have inflated marketing costs. Hackson Films was entitled to significant payments based on gross earnings, leading to a settlement in the $25 to $40 million range.
Actors’ Five-Year Settlement Delay
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(01:04:24)
  • Key Takeaway: The three main actors received a $300,000 settlement from Artisan in 2004, five years after the film’s release, and gained control over future use of their likenesses.
  • Summary: In February 2004, Heather, Mike, and Josh received a $300,000 settlement paid over several years. This settlement also prevented Lionsgate from using their names/likenesses without permission.
Lionsgate Exploits Likenesses Again
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(01:05:47)
  • Key Takeaway: Lionsgate used the original actors’ faces in promotion for the 2016 sequel and the 2024 reboot announcement without consultation, despite previous agreements.
  • Summary: Lionsgate used the actors’ faces all over the announcement for the 2024 reboot, despite not consulting them, prompting the actors to release an open letter demanding consultation and residual payments.
Michael Williams’ Career Pivot
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(01:07:23)
  • Key Takeaway: Michael C. Williams left acting after the experience and became a high school guidance counselor, feeling embarrassed by his inability to financially support his loved ones.
  • Summary: Michael C. Williams left the business to become a high school guidance counselor. He expressed embarrassment over being famous yet unable to pay bills due to the financial fallout.
Heather Ray Hance’s Career Change
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(01:08:06)
  • Key Takeaway: Heather Donahue retired from acting, became a cannabis grower, wrote a memoir, and legally changed her name due to regretting using her real name.
  • Summary: Heather retired from acting in 2007, became a cannabis grower, and wrote the memoir Grow Girl. In 2020, she legally changed her name to Ray Hance to distance herself from the film.
Unauthorized Use in Todd Field’s TAR
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(01:08:33)
  • Key Takeaway: Ray Hance’s screams from the Blair Witch finale appear to be used in the 2022 film Tár, and Lionsgate settled with the other studio without including her.
  • Summary: Ray’s screams from the Blair Witch finale seem to be used in Todd Field’s Tár. When she informed Lionsgate, they settled with Focus Features without including her.
Lesson: Corporations Protect Themselves
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(01:12:14)
  • Key Takeaway: The primary lesson is that corporations exist solely to protect themselves and enrich shareholders, not to benefit creatives, necessitating strong representation and regulation.
  • Summary: The hosts emphasize that corporations are not friends; HR, attorneys, and the corporation itself exist only to protect the corporation and provide monetary returns for shareholders, not creatives.
What Went Right: Directors’ Creativity
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(01:13:58)
  • Key Takeaway: Sanchez and Myrick deserve credit for their creative conceit, relinquishing control to the actors, and their smart editing decisions in post-production.
  • Summary: The ‘what went right’ is attributed to Sanchez and Myrick for their inventive concept, their willingness to let the actors improvise and take control, and their difficult but necessary editing choices.
Final Plea to Lionsgate
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(01:15:03)
  • Key Takeaway: The hosts make a final plea to Lionsgate to do the right thing and provide the actors with baseline residual payments for the forthcoming franchise entry.
  • Summary: The hosts appeal directly to Lionsgate to compensate the three main contributors with baseline SAG-AFTRA residual payments, noting that generosity is an attractive quality that miserliness lacks.
Lesson: Don’t Fear Imitation
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(01:17:00)
  • Key Takeaway: Creatives should not be stopped from pursuing an idea just because the format has technically been done before; the execution and story quality matter most.
  • Summary: The final lesson is that creatives shouldn’t avoid a concept just because it’s been done (like Cannibal Holocaust influencing The Blair Witch Project). What matters is telling a good story well.