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My initial reaction to this video was to question if whoever wrote the title for it may have had a stroke while doing so.
Anyway, I'm with Woolie in that "hearing the music from outside the room" set for things like Hazbin Hotel and Helluva Boss. I only learned the existence of The Amazing Digital Circus (which, apparently, has nothing to do with the former two, outside of presumably having the same sort of "vibes" to it) via watching the above video, though.
"If Newgrounds was a movie studio" seems like a pretty fitting description of this kind of stuff, yeah.
For reference: the Super Best Friends Play LP of I Have No Mouth And I Must Scream. I vaguely remember watching all of that back when it was first released, 10 years ago, after having played the game myself, via GOG (currently on sale there for $1.49 USD, coincidentally), which in turn came after having read the original short story by Harlan Ellison. If this The Amazing Digital Circus cartoon is actually inspired by that, then I might have to check it out.
