I've never seen it, but from my understanding it's amateur style was quite fresh at the time.
Yes. I understand that, but the actual film isn't that good. It is really tense and the suspense if fantastic, but it builds-up to nothing. Whilst I know good horror is about subtlety, it is still nice to have something happen! Without spoiling it, the ending gives no information as to what happens - leaving the plot completely hanging. Yet, it is one of the highest rate horror movies of all time. Why?
As far as I remember, it was one of the first really popular found footage films, so that made an impact. Also, at the time of release there was a fantastic marketing campaign that really sold a lot of people on it being genuine, which as you can imagine really turned things up a notch.
I also think that this film (like paranormal activity, which I adored) was a welcome break from excessive gore and torture porm. It's refreshing and really effective to be given a thread of something terrible that never really materialises, so you're constantly looking in the background and listening for things that may not be there. A bit like when you're in the house on your own and you get spooked, and start imagining that the sounds of the house settling is really footsteps upstairs. 9 times out of 10, what you imagine is scarier than what's really there, and it's the constant tension that sets you on edge and fuels your imagination. Not many films rely on the audience's imagination anymore (which is why I like a well done open ending).
The novelty of it being made for next to nothing also drew people in too I think. It shows what storytellers can be capable of even when you don't have the money to spend on special effects and big name stars.
If it were genuine, then I would be freaking terrified! But, knowing it isn't and going in with high expectations because of reviews (despite friends warning me it isn't good), I was really disappointed. Also, Paranormal Activity was an abomination that even this film slaughtered with its lower budget (I presume). With regards to it showing what storytellers can do on a low budget, it doesn't show that at all! The story is awful. It made no sense!