Ah yes, the age old fear of the Devil. Satanic Panic was a trend among many folk, even non-religious people, who had a fear of heavy metal, questioning authority, and Dungeons and Dragons... for some reason... The panic went well into the 80's, making it hard for anyone who was a little bit against the grain to exist in peace and quiet. One of my favorite videos online relating to this panicked moment in time-- although it's more witch-adjacent rather than strictly demonic/satanic-- is the video where a pastor is talking about how Pokemon is evil because of energy balls and lightning bolts. I guess this falls into the same category cause everything comes down to the Devil. You smell a little funny? Devil. You enjoy music a little too loud? DEVIL! I'll link it here: Pokemon is Evil (this is a legitimate sermon, by the way!)
There's plenty of resources that goes into way more depth about the historical Satanic Panic. Here are some sources here:
Satanic Panic & The Dangers of Cultural Hysteria
What Was the Satanic Panic & Why Did it Happen? |A History Series
How Satanic Panic Came to Roil the Nation During the 1980s
These links, and hilariously dumb video on the evils of Pokemon, all can help get you into the idea of the fear behind Satanic Panic. How does this all relate to the movie Satanic Panic? Well, let's review it and see!