Original Australian Daybill movie poster. Xanadu is a 1980 American romantic musical fantasy film written by Richard Christian Danus and Marc Reid Rubel and directed by Robert Greenwald. The title is a reference to the nightclub in the film, which takes its name from Xanadu, the summer capital of Kublai Khan's Yuan Dynasty in China. The film's plot was inspired by 1947's Down to Earth. Xanadu stars Olivia Newton-John, Michael Beck, and Gene Kelly, and features music by Newton-John, Electric Light Orchestra, Cliff Richard, and The Tubes. The film also features animation by Don Bluth.