Rock Opera version of Phantom Of The Opera with elements of Faust. Record producer Swan steals both the music and the girl (Phoenix) from composer Leach. Disfigured Leach plans revenge on Swan and his rock palace, The Paradise, and becomes The Phantom. Leach signs _contract_ with Swan to complete rock opera based on the life of Faust for Phoenix. Double crossed by Swan who hires _heavy metal_ singer Beef, Leach exacts his vengeance.

A young American dancer travels to Europe to join a famous ballet school. As she arrives, the camera turns to another young woman, who appears to be fleeing from the school. She returns to her apartment where she is gruesomely murdered by a hideous creature. Meanwhile, the young American is trying to settle in at the ballet school, but hears strange noises and is troubled by bizarre occurrences. She eventually discovers that the school is merely a front for a much more sinister organization.