Imagine a disco musical of the book of Genesis, but the frame story is an innocent couple getting sucked into a corrupt music industry run by Not Satan and his assistant dressed up like a snake. It would make a great double feature with Xanadu.
It didn't occur to me when I first watched it, as I was deep in the closet, but upon rewatch is so incredibly obvious that the evil corporation/satan's running crew is top to bottom (heh) queer culture. Drag queens and kings, bondage, leather daddies, everything found in queer culture of the 80s is depicted as deviant, evil, tempting away good boys and girls into sin. No slurs are used, and there's some transphobia baked in there, but the movie really relies on you thinking that BDSM, group sex, and dressing up as the opposite gender is inherently evil. The result is a very odd reading of the movie the second time around.
The hilarious part is that the hippies are considered the "good guys" in the far flung future year of 1999 - you know, the time when many of the hippies turned into yuppies and wealthy business people.