The drive-in theater seems to show Herschell Gordon Lewis' Blood Feast (1963), but it is not. The movie showing is actually The Red Queen Kills Seven Times (1972) a.k.a. "La Dama Rossa Uccide Sette Volte." It was also distributed under the name "Blood Feast," which has caused some confusion.
One of several holiday-themed horror films that followed the success of Halloween (1978) in 1980. The notable difference here is the murderer's face is revealed early on, he isn't masked until the finale of the movie.
The Turner Classic Movies network once paired an airing of 'New Year's Evil' with the film Christmas Evil (1980) for a holiday-themed slasher movie double feature.
The song that the first caller asks for is "We Don't Need No Education." This is a joking reference to Pink Floyd's hit song "Another Brick in the Wall."
Released 12 days before New Year's Eve 1980.