This film is the first production ever to be filmed within the famed Paris Opera House (in France called the Académie Nationale de Musique or Palais Garnier); the backstage area, Grand Staircase, dressing rooms, and the cellars were all shot on location at the Palais Garnier. The only scenes shot elsewhere were those at the "lagoon" (a film set), as well as in the theatre boxes and the auditorium (located in another theatre).
Prior to filming, Charles Dance, who plays the Phantom, made it a point not to see the Andrew Lloyd Webber version on stage.
This film was based on Arthur Kopit's/Maury Yeston's stage adaptation, though adapted as a non-musical production for television.
This is the first film version to avoid showing the Phantom's unmasked face. The stage version does the same, with the Phantom keeping his back to the audience when he removes his mask for Christine.
In this version, as well as its stage adaptation, the character of Inspector Ledoux is a homage to the Persian character - also named Ledoux - in the original 1925 silent film version of "The Phantom of the Opera," starring Lon Chaney.