A disfigured composer sells his soul for the woman he loves so that she will perform his music. However, an evil record tycoon betrays him and steals his music to open his rock palace, The Paradise.
After record producer Swan (Paul Williams) steals the music of songwriter Winslow Leach (William Finley) and gives it to one of his bands, Leach sneaks into Swan's offices. Catching Leach, Swan frames him for dealing drugs, which lands him in prison. After Leach breaks out and again attempts to sabotage Swan's empire, an accident crushes his face. Leach then dons a costume and becomes the Phantom, intent on ruining Swan while saving singer Phoenix (Jessica Harper)
"The film is a one-of-a-kind entertainment, with a kinetic, breakneck wit." -The New Yorker
"A highly inventive updating of the Phantom of the Opera story to the rockbiz world - complete with borrowings from Faust and The Picture of Dorian Gray." -TimeOut