Ben as been a horror movie fanatic his whole life. It's only when he discovers a video shop in town, he gets excited to explore it. Better then that, the shop is called Dr. Horror's House of Video. Ben walks in through the open door and is greeted by Dr. Horror, an elderly man. Dr. Horror says that all of the movies in the shop were directed by him. The narrator explores the store, and he begins watching a film about Lizardman, a lizard monster. Sadly though, he has to go home before he can finish watching the film.
The next day, the narrator goes back to the store by himself. The shop appears to be closed, so the protagonist decides to sneak in. The film from the previous day is still playing, so Ben gets to watch the ending. Ben prepares to go, but the door won't open. He is grabbed by a lizard monster. Other monsters appear as well, such as mummies and vampires. Dr. Horror shows up, and the narrator notices that all of the monsters are creatures from Dr. Horror's movies. Dr. Horror offers to let Ben be in the second film about Lizardman, and Ben accepts the offer.
For the film's first scene, Ben is then tied up as the Lizardman approaches. Ben is impressed with how lifelike all of these monsters seem appear. However, he slowly realizes that the monsters aren't actors in costumes. They are real. Dr. Horror tells Ben, who is still tied up, that the first scene will feature Lizardman feasting. Ben is presumably eaten off-screen by the duplicitous Lizardman, but it is unknown.