I just read the movie summary and it sounded so similar to the description of "Rochelle Rochelle", the movie the cast of Seinfeld was always trying to go watch...
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You know, that came to my mind as well! What is more likely though is that 'Rochelle Rochelle' is a combination of various similar movies, like for instance the controversial 'Inga' [1968].
Actually, George Costanza DID watch it, on videotape. He was also "forced" to watch it twice, because he returned it late the first time and didn't want to pay the fine (as per Kramer's suggestion). :-)