Mat Brewster’s review published on Letterboxd:
Feels less like a sequel than a reboot or reimagining. The plot is basically the same - a random bunch of folk watch a movie and get turned into killer demons who then run amok in an enclosed space. The space has moved from a movie theater to an apartment complex but pretty much everything else is the same.
This time the movie is playing on TV which most of the apartment dwellers are watching. The movie within a movie acts like a sequel to Demons, or maybe it's a based-on-reality type thing. I'm not sure whether Demons the real movie is supposed to have happened in real life in this sequel or if it was just a movie. Whatever, in that movie some teenagers are visiting the wreckage of the first Demons movie. Or something. It is confusing. It doesn't matter.
A girl watching the movie on TV gets turned into a demon and she turns most everyone else into one. The beats are very similar to Demons. There is a romantic couple (this time only one instead of the two in the first film, but the girl is pregnant here). We get people climbing into the air ducts, people trying to smash through a wall, some of the same actors appear in both movies though presumably they are different characters as they all got brutally killed in the first one. There's even some punks driving around in a car, though in this film they serve even less a purpose than the first.
The gore has been toned down, the soundtrack has moved from hard rock to New Age pop, and the designs of the demons are quite a bit better (there's some nice puppet action in this one).
Demons isn't a great movie and Demons 2 isn't a great sequel, but if you like this kind of thing (and if you loved the first one) then this is pretty fun.