Remember when Doug killed off the Nostalgia Critic to make more original content like Demo Reel?
That encapsulates Doug's LARPer fantasies to a T.
Doug is popular for reviewing movies, which is easy to do because it has things to make fun of built-in and it means he doesn't have to come up with an original premise, characters, etc. for the video. They can all be based around stuff already in the movie. Plus, the videos are mostly just flat shots of him in front of a wall.
Doug, with his delusions of grandeur thought that if these reviews were popular, he must be a great writer and director and decided to branch out into more original content with sets and actors like a real production.
One of these was Demo Reel, a sketch comedy parody show. Demo Reel, of course, was godawful and the backlash made him go back to doing Nostalgia Critic reviews.
He flew too close to the sun and plummeted back down to Earth.