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WMG / Cabaret

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The Emcee is a symbol of Germany, and is never "really there."
He starts off welcoming us into the alluring night life of pre-Nazi Germany, but gradually slips increasingly uncomfortable reminders of the growing Nazism and anti-Semitism, until finally at the end, the transformation is complete. On the outside (with his coat and hat), he's now full Nazi Germany, still cruelly telling us how "happy" we should be right now; and on the inside (when he removes his hat and coat), he shows us what Nazism means for the people themselves. His uniform sporting a gold star, a red star and a pink triangle is just meant to convey how many different kinds of people in Germany were victims of the Holocaust.

The Emcee is a real character in the story, and is narrating it from beyond the grave.
There are undeniably scenes in which the Emcee is not literally "there," as well as the clear sardonic commentary he makes on the situations throughout. But in other scenes, he is as corporal and human as anyone else. He really was the human Emcee in charge of the Kit Kat Klub. The Emcee was a victim of the Nazis, just like Schultz, Schneider and Sally. He died in a concentration camp, and is recounting these events to us from "the other side"—in his own showy, scandalous, and sardonic style.
  • During the reprisal of "Tomorrow Belongs to Me" at the engagement party, he looks as visibly crushed as Schultz, Schneider, Sally, and Cliff. He's a gay Jewish performer who came to the party to provide entertainment, and is realizing he is no longer welcome among the people he works so hard to please. Minutes later, the Emcee flashing the swastika on his ass is the Emcee's spirit snidely commenting on the situation he's recounting to the audience.
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  • The famous ending is the Emcee coming out and telling us what really happened to him, and what he really is: a gay Jew who was once a performer, and this was his and his friends' story.

The Emcee is from planet Transsexual Transylvania
He's a scout, slightly better at blending in with human society, sent to get the lay of the land before more official and high-level explorers like Dr. Frank-N-Furter and his assistants. The character shares many similarities with the others we meet, including fluid sexuality and gender, love of performance and drama, and taking delight in shocking and discomforting humans.

Sally Bowles is the daughter of Esther Smith.
Because Esther is Judy Garland and Sally is Liza Minnelli, and the math works. In fact, both movies were released 41 years after the year in which they take place. Of course, you have to assume that it didn't work out with John Truitt, and Esther married someone with the last name "Bowles" instead.