This version is more true to the actual novel than the overly-dramatized and overly-operized 2004 version. This version at least portrayed the Phantom as a deranged lunatic like he is in the book instead of some romanticized hero. This version is bloodier, darker and more modernized. One of the better non-musical versions. House on the Lake? Dude - the setting is an opera house and under the opera house.
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Quillsinc. If you had read the novel you'd know that Gaston Leroux said it was a house on the lake too. Doesn't mean an island. But there is a lake and a river that runs under the Paris Opera house as a part of the sewer system where the story takes place (not London like this version) Do your research before you criticize.