| The remnants of a chandelier are revealed and we are swept back to the time of Raoul’s youth, when the chandelier hung in splendor at the Opera House.
Lefèvre, manager of the Opera House, explains that he is retiring. He introduces the new managers, André and Firmin. Suddenly a backdrop falls from the flies, almost killing the prima donna, Carlotta. She storms out, leaving the new production without a star. The new managers learn that there have been too many accidents. Madame Giry, the ballet mistress, delivers a message to the new managers from the “opera ghost”. Meg, Madame Giry’s daughter, suggests that her friend and fellow dancer Christine Daaé could take Carlotta’s place. Christine has been taking singing lessons, but is unable to say from whom.
The young Raoul, patron of the Opera House, voices his enthusiasm for the new star. Christine can only tell Meg that her teacher is the Angel of Music whom her late father had always promised would one day visit her. Christine’s performance is met with unanimous approval and Raoul goes backstage to congratulate her. The meeting becomes a reunion, both realizing that they used to play together as children. As soon as Christine is alone, a figure appears. It is the Phantom, the teacher whom she has never seen. The Phantom draws Christine into the dark and, when Raoul returns, the room is empty. Christine is led beneath the Opera House. Within his lair, the Phantom reveals the essence of his music and philosophy.
Consumed with curiosity, Christine succeeds in uncovering the Phantom’s face. In a tender moment, the Phantom agrees to return her to the outside world.
Meanwhile the Opera has been thrown into confusion. Everyone has received notes from the Phantom. The Phantom demands that Carlotta be replaced by Christine, but the managers reassure Carlotta.
The Phantom’s voice is heard threatening ‘a disaster beyond imagination.’ When his demands are ignored, he causes Carlotta to emit the croak of a frog instead of singing. André replaces her with Christine. But the Phantom is still much in evidence as the body of Buquet drops from the flies with a rope around his neck.
Christine flees with Raoul to the roof. They agree to leave together that night. The Phantom emerges from his hiding place, where he has heard everything, and vows vengeance.
At a masked ball, all celebrate the New Year and the disappearance of the Phantom. Raoul and Christine have secretly become engaged. A strange figure descends the staircase. The Phantom has returned. He flings to André the score of his new opera, commanding that it be performed. Raoul interrogates Madame Giry about the Phantom. He is an escaped fairground freak – a physical monstrosity with a brilliant mind.
Raoul hits upon a scheme to ensnare the Phantom using his own opera as bait. If Christine agrees to sing the principal role, the Phantom is sure to attend.
Christine visits her father’s grave. If she can free herself from his memory she will no longer be in thrall to the Phantom. The Phantom appears to her in the graveyard. His hypnotic influence, however, is broken when Raoul arrives. Enraged, the Phantom declares war on them both.
Performing his opera “Don Juan”, Christine becomes aware that the Phantom has taken the place of Piangi in the role of Don Juan. As their duet finishes, she tears the mask from his face. Surrounded by police, the Phantom brings down the chandelier in the auditorium and escapes, dragging Christine with him. The body of Piangi is revealed.
Madame Giry agrees to lead Raoul to the Phantom’s underground lair. An angry mob follows. Christine confronts the Phantom: his true disfigurement lies not in his face but in his soul. Raoul appears and the Phantom traps him. The Phantom offers Christine a bizarre choice: she must either stay with him forever or see Raoul killed. The mob drawing ever closer, the Phantom relents and orders them both to go. The mob descends towards the lair, but all that remains of the Phantom is a white mask.
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