Have a fun little bit of a tidbit of trivia information and world building while you continue to vote a bit more.
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Additional Notes Regarding Reactions to Movies/Movie Genres, Horror Movies:
Reactions to this genre among your new world native employees are scattered all over the place ranging from strongly positive to strongly negative, with the overall data suggests an opinion leaning slightly negative response. You hypothesized that the main problems with making well-received horror fiction for the new world populace, or at least Leofarinians, was two-fold.
First, it is probably difficult to scare someone who has seen and suffered quite a bit worse than what could possibly shown on film for the most part. This is definitely more obvious as bandit attacks, bloody warfare, and (for the Bunnies of the Unhallowed Marshes Warrens at least) undead are regular enough occurrences that some people might be a bit desensitized to the genre.
The second problem is a very common problem seen back in your world: tastes varies wildly between two people. What might scare the daylights out of someone would probably make someone else laugh their guts out. Having little knowledge on the cultural tastes of the new world, you are practically exploring unexplored territory here.
However, with your data, you have noticed a few clues and patterns that will help a budding horror-movie maker when catering to Leofarinians.
First of all, you have noticed that depictions of undead like heavily decomposed zombies or skeletons tend to work very well in evoking horror unless the subjects have regular enough experiences with undead. While convincing costumes are enough for most parts, convincing CGI also works just as well, if not better. You noticed that the zombies has to be badly decomposed; "fresher" zombies like the ones shown in Romero's films don't work. Alice, the Commanding Officer of the Onyx Rabbits, remarked that the zombies in Romero's films "act more like raiding Bravian Bunnies in heat when they found a man rather than any feared undead," before adding to the statement that "the situation could be scary for some people..."
Adding to the first point, serious and scary depiction of ghosts and malevolent being that possess people is a bit of a safe bet if one wants to spook the Leofarinians. The Exorcist caused quite a scare among your watchers. Apparently, scaring the daylights out of each other with ghost stories is a popular pastime in a tavern or around the campfire. In addition, the Temple of Divine Word does actually have a dedicated order for exorcising ghosts and the like. How effective they really are is unknown to you, but it must have been even slightly effective since the order still exists even now...
Painful transformations into monsters tend to be a safe bet too. The more monstrous the transformation, the more intense the reactions from the Leofarinian watchers will be. That scene from The Fly caused more than a few watchers, some of them battle-hardened warriors, to run out of the room, with vomiting noises following soon after. Although, relatively mundane werewolf transformation tend to be unnerving too for some watchers. You had to reassure Sister Melancholy many times that there are no werewolves in your world, showing that, despite mostly getting over it, she still have some deep mental scars from the werewolf attack that scarred her many years ago...
Splatter horror and torture porn movies can work in scaring the new world natives, but you found out that the scenes and the entire movie itself must be really-well done or else it might garner a negative reaction. Common points of criticism includes how unreal it looks like to real violence and torture or how boring it is in comparison to, again, the real thing. In fact, sometimes the gore-scenes might just cause laughter on how fake or absurd the whole thing looks. You figured that right now would not be a good time for this sub-genre to flourish.
Slasher Films also have problems preventing them from being well received, but for different reasons. It turns out that the Leofarinians can see and recognize set pattern of tropes within the films after seeing a few and are pretty quick to point them out. They are pretty quick to point out the common pitfalls of the sub-genre, like how people tend to die after having sex, how no one is smart enough to stick together when the killer is on the loose, or how no one is smart enough to carry self-defense weapons, not even so much as a chastity dagger. Particularly well-done slasher films avoided being mocked as harshly, but, like splatter horror films, you don't anticipate widespread appeal among the native populace at this time.
As small note related to the topic of slasher films, it seemed that some of the designs of the killers in these movies are far more well received and has created at least one fan. War-Sister of the Mace Selene has taken it a bit further than many. She had found an old hockey mask in your company's storage room and decided to keep it, decorate it with Temple of the Divine Word symbols and lots of red paint, and wear it around whenever possible. You don't know if she is doing it as a fashion statement or she just likes to scare people with the mask. What you do know is that the mask earns her a variety of nicknames like Sister "Smasher", Sister "Blood", and "The Scary Sister". She eventually settled upon Sister "Thirteen" as her preferred nickname.
You still think she's plain silly...