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Peter Hyams began thinking about a film of a space hoax while working on broadcasts of the Apollo missions for CBS. He later reflected regarding the Apollo 11 Moon landing, "There was one event of really enormous importance that had almost no witnesses. And the only verification we have ... came from a TV camera."
He later elaborated:
Whenever there was something on the news about a [space flight], they would cut to a studio in St. Louis where there was a simulation of what was going on. I grew up in the generation where my parents basically believed if it was in the newspaper it was true. That turned out to be bullshit. My generation was brought up to believe television was true, and that was bullshit too. So I was watching these simulations and I wondered what would happen if someone faked a whole story.
Hyams had originally written the screenplay soon after the first moon landing in 1969 around nine years before this movie debuted in cinemas. Hyams couldn't find any backing or interest in the project. But then, after the Republicans Watergate political scandal in 1972, Hyams sold the script and got the movie into development. It took a few more years to produce the picture and get it into principal photography, with the movie finally launching in theaters in 1978.
The film was part of a cycle of 1970s conspiracy movies. These included: Executive Action (1973), Klute (1971), Chinatown (1974), Cutter's Way (1981), Telefon (1977), Winter Kills (1979), The Conversation (1974), The Parallax View (1974), Three Days of the Condor (1975), The Domino Principle (1977), Good Guys Wear Black (1978), Twilight's Last Gleaming (1977), Hangar 18 (1980), Capricorn One (1977), and All the President's Men (1976). Blow Out (1981) would follow in the early 1980s.
Despite being portrayed as a villain, NASA provided technical assistance, including mock-up spacecraft, sets, vehicles, front screen projection expertise. Access came from producer Paul Lazarus, who had a good relationship with NASA through their involvement in Futureworld.
Writer and director Peter Hyams originally wanted Donald Pleasence to play Albain which was in the end cast with Telly Savalas. Coincidentally, both Pleasence and Savalas played Blofeld in the James Bond 007 films.
In Japan and the UK, a version with a running time of 129 minutes was released theatrically, with additional scenes such as the docking of the spacecraft during the Mars landing, and with different cuts of detail. However, the rights company (ITC Entertainment) has since taken the position that the final version of Capricorn One is the 123-minute version currently in circulation, and that the 129-minute version no longer exists. Therefore, only the 123-minute version is currently distributed in Japan and the UK. However, in 2019, film material from the 129-minute version was discovered at the National Film Archive of Japan, so remastered material was created based on this film and released as "bonus content" only on Japanese Blu-ray, after obtaining special permission from the rights company.
Elliott Gould, who portrays Robert Caulfield, was married to Barbra Streisand from 1963 to 1971. James Brolin, who portrays Charles Brubaker, married Streisand in 1998.
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