It loses it about 2/3 of the way through and has the stupidest ending in a horror movie. Ooooo, the dude jumps in front of the camera. Dumb.

Also, the film implies there's this ancient, supernatural demon character running around carrying a video camera while murdering people. That's just hilarious.

Edit: Oh, wait. The kids are murdering people while carrying video cameras. That's less hilarious but not scary.