Just a bit to add to all the others that will review, and have reviewed this. Like him or not, Lovecraft has been one of the greatest contributors to horror of all time. Even the great Stephen King has borrored generously from his work, and many movies have been spawned from his legacy. By far the most have been more indirect references, while only a few have been direct adaptations. While many of them (as is par for the course in all genres, but in horror in particular) were not at all that good, many of them were very well done and have inspired, scared, and delighted moviegoers for decades to varying degrees. Movies like Midnight Meat Train, The Void, In the Mouth Of Madness, Reanimator, It, and even Hellboy owe a great deal, if not all, their inspiration to Lovecraft's work.
For all this amassed body of work, few movie makers ever try to stay very close to the actual Lovecraft work, and there are arguably some good reasons to do so. To depict madness inducing multidimensional realities, largely atmospheric details based far more on feelings and descriptions than on actual monsters and events... to try to capture in image form DREAD which is far better imagined than shown, is a task that is daunting at the very least.
I must say though, while definitely not strictly adhering to the original text in making a modern version of The Color Out of Space, this version is one of the truest adaptations of any Lovecraft tale I have yet to see, and easily one of the best. It has enough flash and modern context to bring new viewers to the Lovecraftian ethos, while still keeping the core atmosphere and subject matter of the story alive. It is delightful to see such a reverent interpretation of a story that I, in absolute truth, cut my teeth on at the beginning of my lifelong enjoyment of horror. it is also great to hear the director, Richard Stanley, is planning on tackling more Lovecraft tales soon.
This story in particular was a memorable one for me as a kid... and I am glad to see it given its due. Only one other adaptation is better in my opinion... and if you liked this version and would chance to see an even more direct (albeit also a slightly more artistically abstract) version, I would HIGHLY recommend you see Die Farbe (aka The Color), which is a German version from 2010.
Happy viewing.
(PS, I know of an Italian version as well that i have yet to see. I hear it is also quite good, and I will see it. Maybe you too will seek it out and watch it. if you do, good luck :) )