There’s money in mico-budget genre titles.

Canadian film distributors sure think so.

Entertainment One (eOne) has inked a deal with Paranormal Activity producer Steven Schneider and The Grey producer Adi Shankar for a supply of low-budget horror titles.

Schneider and Shankar’s production shingle, Room 101 Inc., will make two filmmaker-driven genre titles on average a year that Entertainment One will fund, co-produce and push down its international distribution network, excluding the American market.

The tie-up with Room 101 follows Alliance Films financing the Insidious franchise.

The original 2011 Insidious spook movie from Saw director James Wan, writer Leigh Whannell and producer Jason Blum cost around $1.5 million to make and has pulled in around $150 million in worldwide boxoffice.

Alliance Films is financing an Insidious sequel.

Room 101 has similar ambitions on the strength of its track record with Paranormal Activity as a magnet for emerging genre- filmmakers.

“Paranormal Activity, Insidious, and The Devil Inside each caused tectonic shifts in the micro-budget film landscape. Going forward, Room 101 is committed to evolving the micro-budget space even further,” Adi Shankar said in a statement.

And Entertainment One will be distributing the genre titles across its expanding network.

“With this co-financing venture, we are taking a more global approach to films, allowing all of our territories to distribute the slate and providing our international sales teams with highly-commercial pictures for distribution around the globe,” Patrice Theroux, president of filmed entertainment at Entertainment One, said in his own statement.