The more I think about this story the more I hate it/become more baffled as to how it became such a classic. Going into it I expected something like SCP 2030 (great read BTW, or watch the
Volgun narration which is top quality too) where the story is children vanish from reality and then appear in this creepy kids show. The fact that there's nothing supernatural going on, and it's just a schizo satanist kidnapping kids and producing his own public access show, is so fucking retarded. Not a single person reported the kids missing? Not a single adult has stumbled across the channel when it aired? Evidently someone did, because the police did show up, but the show somehow went on for a dozen or so episodes with no one noticing? I have no idea how PEG works but I think it's safe to assume it's not some wild west, unmoderated deep web platform where you can literally just freely broadcast gore and horror with no oversight.
Either go the supernatural route or stay vague enough that it's unclear what really happened. Otherwise you end up with shit like this. When you ask the reader to take something seriously but throw all realism, or even a semblance of realism, out the window, then it's no longer scary.