My younger son likes to watch scary movies and he is not scared , he believes that there is no such thing as monsters , ghosts or witches etc.
He thinks scary movies are fun.
My daughter on the other hand hates them and gets scared.
So where is the fun part in the scary movies ?
Now to the subject of scary being funny. If you have seen the Burger King’s mascot the King, it looks so scary to me , but it is considered funny by Burger King Corporation and many American viewers. I do not know from which angle I have to look at it so it seems funny to me.
Re: Is scary funny or fun ?
I wonder what is similiar between something that is scary and funny at the same time. Apart from the example that you quoted of your child, who is exempted here, I think it can only be a sadist's choice who finds something scary as funny.
Re: Is scary funny or fun ?
The Burger king dude...it just is sooooo weird...and Didi u see their ad with the young bacha in it..What are they thinking?
They really need to find some good advertising company. These ads are soooo scary.
Re: Is scary funny or fun ?
I think when children/people see the unusual things that cannot exist, they turn out to be something funny for them. For instance; "Evil Dead" is quite an old movie, still whenever I watch it I get nightmares., It's so horrible, but I saw other people laughing at that movie, they are like "it's weired and funny"
The “king” is creepy. You seen the add where he just emerges from the backseat of the car while the driver is unsuspecting? If the ‘king’ did that to me, I’d slam on my breaks and watch him fly out my windshield. Seriously. 
Creepy.