The morning after a wild party, a young film student awakens in the arms of a mysterious actress. Unsure where they are, the two startle to find a video camera at the foot of the bed aimed at them. Suspicious of one another, the lovers decide to watch the tape.
Their apprehension turns to terror as they see themselves on screen gleefully committing a savage murder in the room they've just slept in. But there are no victims, no blood, no sign of struggle. The aspiring filmmaker doesn't have time to investigate. He is late for a very important class -- he has to pitch his next film.
Arriving late to class, he recounts the horrifying experience he just walked away from, convincing class members it's fiction. By the time the class enthusiastically votes to produce his movie, it is too late for him to back out.
So now, the director spends his days filming the waking nightmares that he discovers nearly every morning on videotape, and spends his nights trying to discover who is filming him.