'Terrifier 3' Director Damien Leone Says Movie Will Spark More Gore in Hollywood

Damien Leone says his new slasher flick "Terrifier 3" is going to spark a horror film renaissance in Hollywood ... predicting his box office success will convince the major studios to loosen up.

The "Terrifier 3" director joined us on "TMZ Live" Thursday and we asked him about all the blood and gore in his killer clown slasher.

Moviegoers have been vomiting and leaving theaters early due to the unrated film's graphic scenes ... and he tells us that's actually good for business ... similar to the release of the original "Exorcist" back in the day.

Damien's horror movie is making money hand over fist and he says it's going to force the big studios in Hollywood to allow directors to push the envelope more and follow his lead ... with finances being the motivating factor here.

We also got "Terrifier 3" star Samantha Scaffidi out in Los Angeles, and she told our photog she has to cover her eyes when watching the film franchise ... because it's too gory for her.

Samantha admits she's even told her friends they don't have to watch her work because of all the blood.

No matter, the movie is already the highest-grossing unrated movie of all time, making $50 million worldwide and counting. Not bad for a film with a 7-figure budget!

Catch the full interview with Damien on "TMZ Live."