It is 1911 and the contents of the Paris Opera House are being auctioned off. Present are the auctioneer, porters and bidders. Raoul, now seventy years old and in a wheelchair, buys a poster and a music box. As the auctioneer displays the Opera House chandelier, he explains that it is connected with the legend of The Phantom of the Opera. With a flash of light, the audience is flung back in time, when the Paris Opera was at its height. We are thrust in the middle of a rehearsal for the opera Hannibal. Monsieur Lefvre, the retiring manager of the Opera, is showing the new managers, Monsieurs Firmin and Andr, the great stage. As the prima donna, Carlotta, is singing, a backdrop falls to the floor, nearly killing her. The cry is raised, "It's The Phantom of the Opera!" Upset, Carlotta refuses to sing. Meg Giry, daughter of the ballet mistress, Madame Giry, suggests her friend, Christine Daa, take Carlotta's place. Christine has been taking lessons from a mysterious new teacher. At her triumph in the Opera, is Raoul, a nobleman and patron of the Opera. Raoul recognizes Christine as a childhood friend. He comes backstage after the performance to escort her to dinner, but Christine tells him she cannot go, because her teacher, "The Angel of Music," is very strict. When Raoul leaves Christine's room, the Phantom appears. Christine is lured into the bowels of the Opera House, where the Phantom will continue her lessons. He leads her to his underground lair, where she sees a frightening vision of herself in a wedding gown. She faints, only to be awakened several hours later by the Phantom's music on the organ. Creeping up behind him, she rips off his mask. Horrified, he takes her back to the surface. The Phantom has sent notes to both the managers of the Opera, as well as Raoul, Madame Giry and Carlotta, which give instructions that Christine will have the lead in the new opera, Il Muto. The manager's refuse to give in to the Phantom's demand...