Horror Movies aren't dying because of blood and gore, I disagree actually.
Horror Movies are dying because they are starting to become the same movies following the same formula. From the moment a horror movie starts I can pick out exactly who is going to die and I know when they are gonna die 10-15 minutes before it happens (sometimes even more than 10-15 minutes).
I'm not the biggest gore / torture fan, in fact, I don't care for it much at all (though oddly one of my favorite horror series of all time follows that exact description...). But I can live with it, it's just something needs to be present that actually scares me.
Remakes
The remake of Halloween I actually liked. I never saw the second one, but the first one really expanded on Michael, and why he was a scary individual. Overall, I thought it was a good movie.
I'm on of the few people I've met who actually enjoys when certain movies get remade. Because, lets face it, ten or twenty years from now, most people aren't going to watch the classic. And it saddens me that certain movies will just die down forever. Where some people find remakes to be stupid and worthless, I think they're a great way to bring a classic to the modern audience. As long as they don't butcher the original, I honestly have no issues with doing so at all.
What's really missing in modern horror?
However Saw, My Bloody Valentine, One Missed Call, featdotcom, etc. etc. Lacked imagination. Most of them I predicted the outcome of the movie within the first half hour...
It's like someone mathematically broke down hundreds of classic horror movies, and then put the formula to the test. And when it was successful, they didn't bother playing around with what they could do, they just kept replicating it over and over again.
Then you have the torture genre, which is....not my favorite. Generally have 1-3 characters who get tortured for the entire movie and the most gruesome manner possible. It's gross to watch, goes nowhere, and the villain usually gets away and appears in 10 more movies. Boring...
What makes the classics so much better?
Honestly, they weren't. I hear it from a lot of people why they are so much greater, but the truth of the matter is they aren't any better. Back when they appeared they were original, they were new, unique, etc. That's why people remember them as being better. But they generally follow the same formula.
To me, this doesn't mean that the genre has always been that awful, it just means that the genre has never evolved.
What were unique series?
Hellraiser (one of my favorite horror series) was a torture flick. It's bloody, scary, suspenseful, and makes you cringe, but you can't take your eyes off the screen. This one is still unique. Hell, magic, torture, sadistic bad guys, blood, hunting, etc. Hellraiser combined every other horror idea into one flick, and it was awesome. By todays standards, probably not as cool, but come one, this guy was just horrifying!

Aliens (might be my favorite) was more of a thriller, but oh my was it suspenseful. The first three just made your bones cringe. If you can honestly say that the first time you watched this movie you didn't jump, or cringe, then you are truly made of harder stuff than your average human being! No movie will ever top Aliens in sheer thrill factor. These things were deadly, dangerous, and when you killed them they killed you back with acid blood. Xenomorphs are still one of the deadliest alien races on their level (street level in comics I suppose).

The Shining (oh man, I can't even describe this one) is still a classic that could never be replicated. Somewhere between the concept of psychopath with an axe, haunted house, and ghosts, this movie took things to a whole new level. Jack Nicholson improvised the line "Here's Johnny" and the director loved it, as a result it's been engraved in the heads of all of us who have watched that movie.

There are more, but those are my top 3.
What's REALLY missing these days?
A new formula, and that's all I have to say about that.
Thanks for reading,
Floopay
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