A horror image that once spread through internet forums and late-night YouTube videos may now be heading to theaters.

Reports say a film adaptation of “Smile Dog” is in development at NEON, with Markiplier attached to direct.

The project would adapt one of the internet’s most well-known creepypastas — a disturbing online horror story centered around a cursed image of a grinning dog that supposedly drives viewers insane after seeing it.

The reported film comes as Hollywood studios rush to capitalize on the growing success of internet-born horror franchises.

At the same time, A24 is preparing for a huge opening weekend with “Backrooms,” another film based on a viral online horror concept created by YouTube filmmaker Kane Parsons.

Industry projections say “Backrooms” could open between $40 million and $50 million despite a production budget near $10 million.

That would make it one of the biggest breakout horror openings in A24 history.

What the reports show

• “Smile Dog” is reportedly being developed by NEON
• Markiplier is reportedly attached as director
• The story is based on a viral creepypasta horror legend
• “Backrooms” is projected to open between $40 million and $50 million
• “Backrooms” reportedly cost around $10 million to make

THE BIGGER QUESTION

Hollywood spent years chasing superhero movies and giant franchise universes.

Now studios are increasingly turning toward internet horror stories created by independent online creators with built-in fan bases and massive viral reach.

That shift matters because these projects are often far cheaper to produce while attracting highly engaged audiences who already know the mythology.

The success of films like “Backrooms,” “Obsession,” and Markiplier’s own “Iron Lung” suggests the next generation of horror directors may come from YouTube instead of film school.

Still, recent box office numbers suggest audiences remain highly interested in experimental online horror concepts.

WHAT HAPPENS NOW

Neither NEON nor Markiplier has publicly confirmed major production details yet.

If development continues, “Smile Dog” would become one of the most recognizable creepypasta adaptations ever attempted by a major horror distributor.

The project could also push more studios to aggressively pursue internet-born horror IP as the genre continues outperforming expectations at the box office.

What we still don’t know

• When production could officially begin
• Whether Markiplier will also appear in the film
• How closely the adaptation will follow the original creepypasta