Prompted by the success of John Carpenter's "Halloween" (1978), director Cunningham put out an advertisement to sell the film in "Variety" in early 1979, while Miller was still drafting the screenplay. After casting the film in New York City, filming took place in New Jersey in the summer of 1979, on an estimated budget of $550,000. A bidding war ensued over the finished film, ending with Paramount Pictures acquiring the film for domestic distribution, while Warner Bros. Pictures secured European distribution rights.