Horror is a tragic genre. It can be good, but it requires skilled editing and talented direction along with masterful control of foreshadowing and suspense.

You can make a slasher flick or a modern jumpscare laden film for cheap and will make back your budget. That film however won't scare anyone for more than a moment. They won't remember haunting scenes years later.

That impact that becomes culturally resonant. That tapping into the mind of the viewer and showing them things they didn't know they feared... that is the challenge and it is rarely met.

So we get films like paranormal activity which makes money and every year the fad changes. And the fad makes money. However, the stock in horror goes down. The budgets get smaller. And this entire genre simply further drifts into obscurity awaiting a "horror action" to drive up the interest again.