According to Latt, "I'm not trying to dupe anybody. For example, the film Transmorphers bears a number of similarities to the film Transformers, which was released theatrically two days after the release of Transmorphers. In 2007, similarities between the distributor's titles and those of major studios were reported. ordered 100,000 copies of The Asylum's adaptation, a significantly larger order than any of the company's previous releases, resulting in Latt and Rimawi reconsidering their business model. Wells' The War of the Worlds, which was released in the same year as Steven Spielberg's adaptation of the same material. In 2005, the company produced a low-budget adaptation of H. The company focused on producing straight-to-video low-budget films, usually in the horror genre, but were unable to find a market due to competition from major studios, such as Lions Gate Entertainment. The Asylum was founded by former Village Roadshow executives David Rimawi, Sherri Strain, and director David Michael Latt in 1997.
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