stylistic:tone
Development

Psycho is based on Robert Bloch 's 1959 novel of the same name, loosely inspired by the case of convicted Wisconsin murderer and grave robber Ed Gein. Both Gein, who lived only 40 miles (64 km) from Bloch, and the story's protagonist Norman Bates, were solitary murderers in isolated rural locations. Each had deceased, domineering mothers, had sealed off a room in their home as a shrine to them, and dressed in women's clothes. Gein was apprehended after killing only twice.

Peggy Robertson, Hitchcock's long-time assistant, read Anthony Boucher 's positive review of the novel in his "Criminals at Large" column in The New York Times and decided to show the book to her employer; however, studio readers at Paramount Pictures had already rejected its premise for a film. Hitchcock acquired rights to the novel for $9,500 and reportedly ordered Robertson to buy all copies to preserve the novel's surprises. Hitchcock, who had come to face genre competitors whose works were critically compared to his own, was seeking new material to recover from two aborted projects with Paramount: Flamingo Feather and No Bail for the Judge. He disliked stars' salary demands and trusted only a few people to choose prospective material, including Robertson.

Paramount executives balked at Hitchcock's proposal and refused to provide his usual budget. In response, Hitchcock offered to film Psycho quickly and cheaply in black and white using his Alfred Hitchcock Presents television series crew. Paramount executives rejected this cost-conscious approach, claiming their sound stages were booked, but the industry was in a slump. Hitchcock countered that he personally would finance the project and film it at Universal-International using his Shamley Productions crew if Paramount would distribute. In lieu of his usual $250,000 director's fee, he proposed a 60% stake in the film negative. This combined offer was accepted, and Hitchcock went ahead in spite of naysaying from producer Herbert Coleman and Shamley Productions executive Joan Harrison.