I love the way historical fiction can pull you even deeper into a story. Isabel Allende is one of my favorite authors in that she combines that + magical realism.
If you have ever seen an old school movie. Then you have come across a historical fiction. As they are a literary genre in which the plot takes place in a setting located in the past.
Depends on if the movie is based in fact though, you know? It can be *set* in the past, but not necessarily historically correct. 
Right. They can be applied to work in  theatre, opera, cinema and television, as well as video games and graphic novels