Why creepy, you asked? I think in part the B&W lends to it - I'm betting in color it's a bit more cheerful and light. It seems Frosty is melting, probably due to the warmth of the light flare, and Santa is taking some sort of perverse pleasure in that. He has a bland, empty sort of expression (which is to be expected with a plastic figuring, I suppose) but it has sort of a "what's it to ya?" feel. I tell you, it's a fascinating image!
I gotta tell ya this is downright creepy. Not sure if that is what you intended but all I could think of was Pennywise the clown from a Stephen King story. Excellent flare and flarelettes, though!