Matinee (1989)

Welcome to Holsten, B.C., a small town where no one is very happy. Two years ago the local movie theatre had a horror film festival, during which a local teen was murdered at the same moment and manner as the onscreen character. Now another horror movie festival is set to happen, and some people feel history will repeat itself. Sure enough, as the line between movies and reality blurs, the horror doesn't stay onscreen.