Watch 123Movies. Psykho III: The Musical is an intriguing play on the tension between “authentic” and “pop” camp. This celebration of artifice was originally written, directed, and produced by Mark Oates as a stage musical parody following the release of Psycho II in 1983, and was performed at the East Village’s most notorious nightspot — The Pyramid Club. In 1985, after a wildly successful run, Oates reached out to longtime friend and video artist Tom Rubnitz to produce a video adaptation of the stage musical.