I love all types of horror media, but I believe video games have the most potential out of any medium. A great example of this would be the recently released indie game, Gnarled Hag.
The premise is simple; a kidnapped little girl has to escape the house of a very gnarled, old witch. It's by utilizing the dynamic and interactive strengths of a game that this 10-minute experience can leave more of an impact than a 90-minute movie.
To start, the game invests you in the character's survival by having you control her. You're now responsible for her wellbeing, and it's up to you to get her out of the house. Not to say movies can't reach that level of intensity, but a video game does this so much faster.
Furthermore, the girl dynamically responds to her environment by having her eyes follow each sound she hears. This little detail instantly makes the character seem so much more lifelike and organic. It also helps that the game's cartoonish art style made her eyes three times as big, and very noticeable.
This detail ties together wonderfully with the game's subtle sound design. The Hag's footsteps dynamically get louder, or quieter, depending on how far away from you she is. This gets the player to truly engage with his or her ears, as you have to always listen closely so as not to get jumped around each and every corner.
All these aspects combined easily put you in the girl's perspective, and make you feel as if you're trapped in that house with her. I recommend sitting down to play this one, as it's free and will only take you about 10 minutes to beat... if you don't suck. Here's the link where you can download it.
This little game is definitely a Good.