The viral Internet 2-minute video that scared people across the globe, "Lights Out," has been optioned for a big-screen adaptation by James Wan with original director David Sandberg set to return for the project.

Deadline now reports that production started today and Teresa Palmer is slated to appear in a leading role for the film.

The film will be a production by Atomic Monster, who also produced "Annabelle" with New Line Cinema. It would later go on to gross $255 million worldwide.

This will mark the feature directorial debut for filmmaker Sandberg, with Wan set to produce.

The basic premise for the film will be based on the horror short, but with an expanded story line to fill the feature. It will feature a young boy played by Gabriel Bateman ("Stalker") and his estranged sister (Palmer) who have to battle a strange entity. The entity only appears when the lights go out and this churns out the frightful elements of the film.

The screenplay for the film has been written by Eric Heisserer, who will also serve as a producer on the film alongside Wan and Lawrence Grey of Grey Matter Productions.

Wan's previous horror hits include "Dead Silence," "Saw," "Insidious" and "The Conjuring." His partnership with New Line on "The Conjuring" led to a highly successful run at the box-office with a $318 million worldwide run, which is an exceptional number for an R-rated horror film.

Wan's own history started out much like Sandberg's. He originally directed a horror short film that eventually turned into the movie "Saw," who's successful run included six sequels and outstanding box-office returns.

Palmer is also an in-demand actress these days. She is slated to appear in the remake of "Point Break" and "The Choice" from Lionsgate.

See the original horror short video the film is based on below.