This was a children's division of Gativideo (then called Legal Video), which distributed cartoons from Hanna-Barbera from early 1986 to 1988. The description is also applicable to the "movies" variation with no frog, obviously.
Low to nightmare. The very weird (almost nonsensical) nature of this logo and the "in your face" nature of it will creep out more than a few people - it's even worse considering that this was on Disney tapes at one point, that will likely scare children. It's lower for those who are used to it and for those who don't find this logo scary at all.