A lot of horror movies around that time did the same thing to make the audience feel more unsettled. Imagine being a kid in the 1970s and having to walk home from the theater after seeing this. I believe Texas Chainsaw Massacre is one of the most notable movies to employ the whole "based on a true story" thing. They still use the same tactics today, albeit modified somewhat. Look at The Blair Witch Project, I remember the Sci Fi Channel doing a lot of promoting for the movie and it was shot as a documentary with "experts" weighing in on what happened. And of course more recently Paranormal Activity with its "Youtube Vlog" type cinematography.
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