Lyric discussion by NarMithrandir 

The song as some people believe is inspired by a Japanese movie called "After Life (Wandafuru Raifu)" which plot is about how people after they die they have seven days to choose one single memory from their lifes and then they will "live" in that memory repeating it forever.

Now, I don't know exactly from what perspective or perspectives Tom is talking from the lyrics. For me he is comunicating or talking to the memory of a very loved one from the after life he is in now.

Mephistopheles can be an interpretation of the Grim as he describes how he is reaching to "grab" him.

Then he talks how those good old days meant so much for him and how now he has them in "red blue green" as in a motion film. Also how much love he had for that person as he/she was his center.

He then tries or succeed in saying goodbye in some way from his "heaven" but not face to face 'cause he can't (He's dead!). Also, before he goes forever into the neverending memory.

Finally, he's reensuring the person he's talking with that no matter what happens now he/she shouldn't be afraid of (at least I imagine that) how he/she will cope life now without him and/or if he (the narrator) is suffering, sad, angry, or regretful because now he is happy knowing that he will live forever happy in the most perfect day of his life, meaning the eternal memory.

The "Videotape" is a metaphor of the neverending memory he is going to live in now, 'cause just as a videotape does, he will experience the memory and then the videotape will rewind and start again and again.

Maybe Tom didn't mean to write the song about "After Life (Wandafuru Raifu)". It is possible it's just a coincidence but, once you know the argument of the movie it's very easy to connect the dots and make an interpretation of the lyrics. Of course even if the song is inspired or not in the movie, it can be interpretated in a different way by each one who listen and analyze the lyrics.

@NarMithrandir Fe de Erratas: I wrote Thom wrong. Sorry, did it quickly, did not pay much attention.

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