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You can stream Theatre of Darkness: Yamishibai (2013) on Crunchyroll with a subscription.

Yamishibai is a picture-story style of animation whose motif is surrounded and based off the rumors, and urban legends throughout the history of Japan.

A mysterious storyteller uses paper-style animation to breathe life into the chilling urban legends haunting the Japanese countryside. Each flickering frame turns local rumors into visceral nightmares that linger long after the campfire dies.