In American Horror Story: Asylum, Jude seems to be turned religious and tries religious ways as per her beliefs, but why did she allow to show a provocative film on movie night? What was that movie and how is it even allowed by Jude to be shown in the asylum?
In the original version, Marcus Superbus (Fredric March) is unsuccessful in his desire to seduce Mercia (Elisa Landi), an innocent Christian girl. He then urges Ancaria (Joyzelle Joyner) to perform the erotic "Dance of the Naked Moon" that will "warm her into life".
It was Sister Mary Eunice, not Jude, who proposed the movie.
Sister Mary Eunice later announces in the dayroom that the movie The Sign of the Cross will be shown to the residents to soothe them during the coming storm.
Later, Jude gets a disturbing phone call and gets drunk.
Jude drinks the entire bottle of communion wine and drunkenly introduces Briarcliff Manor's inaugural movie night, quoting "You'll Never Walk Alone" from Rodgers and Hammerstein's Carousel.
If I remember correctly,
Mary Eunice was already possessed by then and it was probably the Devil who wanted to disturb the asylum patients with such a movie. Jude, who was secretly a very sexual woman, was drunk when the movie started and eventually got distracted searching for the missing patients and even seeing an alien.
Assuming she didn't know the movie, these all contribute to why she did not stop it when (and if) she realized it was erotic. However, as she sobers up, she does indeed cut it off.
Jude shuts the movie, and any other future group events, down, telling the group they can thank the missing sexual deviant, the Mexican, and Pepper for the disruption.