This is an intelligent filmmaker, after all. Jackson cleverly adds in a few narrative references as well. We see one in the trailer where the inner filmmaker is directing Ann to scream. I understand there are a quite a few more subtle 'movie within the movie" touches that Jackson intends to add in the DVD cut. The business about the monster coming off the stage/screen and entering the audience is a fold-shifting device visited many times since.
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How clever, to overlap the layer of original-remake with that in the story of movie within layered on the "real" thing. The big layer is that when the Kong show comes to 1933 New York, the costumes and music are from the 1933 film. When looking for an actress, Denham asks about Fay, and is told she is filming something for RKO, the original Kong, in fact. He intends to be outside the play, but gets swept up in it as the venture (again, literally) leaves with him aboard. This Kong sets the human lover as the actual playwright who (literally) is writing what we see as we go along. Fortunately, we have the Jackson of "Forgotten Silver," "Heavenly Creatures" and "Meet the Freebles," all in this family of reflection. The form is nominally a beauty and the beast love story, but inside it is a similar beauty and the beast story about the notions of dangerous storytelling.
This also gets out of hand in the same way. Then a larger crew gets involved and subdues the "beast" (the energy of the thing) and recasts it as a slightly different type of show, the "real" thing. Was it the first major film with such explicit folding? It is a movie about the making of a movie that gets out of hand so the inner movie takes over the enclosing one. The world of movie imagination was in its earliest phases, so quite apart from the innovations of animation and dramatic scoring, the engineering of the narrative was radical and important - the idea of making a movie about making a movie. Most folks know that the 1933 "Kong" changed the world in fundamental ways. Jackson has now solidly replaced Spielberg.