A compelling argument could be made for it being and not being a horror flick. Personally, I see it as one, much in the same way a film like Psycho, Last House On The Left, Hills Have Eyes, and Friday the 13th is seen as one.
I would also add that M can just as easily be regarded as a proto-slasher as well.
Regardless, M is certainly a hybrid film. Part horror. Part Slasher. Part detective. Certainly it's the forerunner of such films like Manhunter/Silence of the Lambs.
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