Although not the first found footage film, this movie widely popularized the genre.

Answer The Blair Witch Project

Although "Cannibal Holocaust" came first, the surprising success of "The Blair Witch Project" in 1999 led to many other horror movies using a similar found-footage technique, including the "Paranormal Activity" and "Cloverfield" franchises. The movie earned $248.6 million at the box office but only cost $60,000.

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