Minogue and Deconstruction Records parted company and following a duet with the
Pet Shop Boys' on their
Nightlife album, she signed with
Parlophone in April 1999. Her album
Light Years (2000) was strongly influenced by 1970s
disco artists, such as
Donna Summer and
Village People and included several songs written by
Guy Chambers and
Robbie Williams who imbued their lyrics with humour.
New Musical Express wrote: "Kylie's capacity for reinvention is staggering" and summarised the album as "sheer joy" and "what she does best".
It generated career-best reviews for Minogue and quickly became a success throughout
Asia, Australia and
Europe and sold over two million copies worldwide. The single "
Spinning Around" became her first UK number-one in ten years, and its accompanying video, which featured Minogue in revealing gold hot pants, received widespread television airplay. The subsequent single releases were hits, including "
Kids", a duet with
Robbie Williams.
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In 2000 Minogue performed a cover version of
ABBA's "
Dancing Queen" and her single "
On a Night like This" at the
2000 Sydney Olympics closing ceremony, an event watched by an estimated 2.1 billion people in 220 countries. Afterwards, she embarked upon a concert tour,
On A Night like This Tour, which played to sell-out crowds in Australia and the United Kingdom, where she sold over 200,000 tickets and set an
Australian record for a female artist.
Her six planned
Melbourne shows were increased to twenty-two due to public demand. Minogue was inspired by the style of
Broadway shows such as
42nd Street and films such as
Anchors Aweigh,
South Pacific and the
Fred Astaire and
Ginger Rogers musicals of the 1930s. Describing
Bette Midler as a "heroine", she also incorporated some of the "camp and burlesque" elements of Midler's live performances.
The show directed and choreographed by Luca Tommassini featured elaborate sets such as the deck of an ocean liner, an
Art Deco New York City skyline, and the interior of a space ship, and Minogue was praised for her new material and her reinterpretations of some of her greatest successes, turning "
I Should Be So Lucky" into a
torch song and "
Better the Devil You Know" into a 1940s
big band number. She won a "Mo Award" for Australian live entertainment as "Performer of the Year". Following the tour she was asked by a
Seattle Post-Intelligencer journalist what she thought was her greatest strength, and replied, "That I am an all-rounder. If I was to choose any one element of what I do, I don't know if I would excel at any one of them. But put all of them together, and I know what I'm doing."
In 2001 Parlophone released
Fever, which retained some disco elements and combined them with 1980s
electropop. Its lead single "
Can't Get You out of My Head" became the biggest success of her career and reached number one in over twenty countries, which sold more than four million copies worldwide. The album's success was equally widespread, and following extensive airplay by North American radio,
Capitol Records released it in the United States in 2002. It attracted favourable comment, with
Rolling Stone calling it "campy as a tent full of
Boy Scouts and yet easy on the cheese", while
Popmatters described it as "a perfect album of gorgeous dance music".
Minogue attracted some negative commentary, such as from
Launch's Bob Gulla, who wrote: "she'll do virtually anything to get our attention. Not since
Pia Zadora have we seen a more vacant talent grab... an astoundingly bland helping of hollow dance pop grooves and nauseating pleas for sex... it's so desperately lightweight it's in imminent danger of disintegrating altogether".
The album debuted on the U.S.
Billboard 200 albums chart at number three, and the single reached number seven on the Hot 100.
Fever peaked at number ten on the Canadian albums chart and the single reached the
BDS airplay top three. Following singles "
In Your Eyes", "
Love at First Sight" and "
Come into My World" were substantial successes throughout the world, and Minogue established a presence in the mainstream North American market, achieving particular success on the
club scene. In 2003 she received a
Grammy Award nomination for "Best Dance Recording" for "Love at First Sight", and the following year won the same award for "Come into My World".
Minogue's former stylist and creative director
William Baker explained that the music videos for the
Fever album were inspired by
science fiction films—specifically those by
Stanley Kubrick—and accentuated the electropop elements of the music by using dancers in the style of
Kraftwerk. Alan MacDonald, the designer of the 2002
KylieFever tour, brought those elements into the stage show which was based around a framework of seven iconic female images, drawing from Minogue's past incarnations. The show opened with Minogue as a space age
vamp, which she described as "Queen of
Metropolis with her drones", through to scenes inspired by Kubrick's
A Clockwork Orange, followed by the various
personas of Minogue's career. Minogue said that she was finally able to express herself the way she wanted, and that she had always been "a showgirl at heart".
Her next album,
Body Language (2003), was released following an invitation-only concert, titled
Money Can't Buy, at the
Hammersmith Apollo in London. The event marked the presentation of a new visual style, designed by Minogue and Baker, inspired in part by 1960s icon
Brigitte Bardot, about whom Minogue commented: "I just tended to think of BB as, well, she's a sexpot, isn't she? She's one of the greatest pinups. But she was fairly radical in her own way at that time. And we chose to reference the period, which was ... a perfect blend of coquette and rock and roll."
The show attracted mixed reviews, with the main criticisms being that nothing substantially new was presented, and that the new songs did not match the appeal of her previous hits. Despite this, the concert was made into a successful television special that drew high ratings.
The album downplayed the disco style and Minogue said she was inspired by 1980s artists such as
Scritti Politti, Human League, Adam and the Ants and
Prince, blending their styles with elements of
hip hop.
It received some of the most positive reviews of her career with
Billboard Magazine writing of "Minogue's knack for picking great songs and producers".
All Music described it as "a near perfect pop record...
Body Language is what happens when a dance-pop diva takes the high road and focuses on what's important instead of trying to shock herself into continued relevance"
Sales in the United Kingdom and Australia were good but paled in comparison to "Fever", despite the large success of its first single, "
Slow" and in the United States the album made little impression, although the singles became major club hits. In November 2004, "Slow" was nominated for a
Grammy Award in the category of "Best Dance Recording".
Minogue released her second official greatest hits album in November 2004, entitled
Ultimate Kylie, along with her music videos on a
DVD compilation of the same title. The album introduced her singles "
I Believe in You", co-written with
Jake Shears and
Babydaddy from the
Scissor Sisters, and "
Giving You Up". Both songs reached the British top ten, and with a tally of twenty-nine top ten singles, Minogue became the second most successful woman on the British singles charts, behind
Madonna.
"
I Believe In You" reached the U.S.
Hot Dance Club Play top three and attained dance and rhythmic radio airplay nationwide. Minogue was nominated for a Grammy Award for the fourth consecutive year when "I Believe in You" was nominated in the category of "Best Dance Recording".
In April 2005, Minogue and her creative director William Baker issued a joint statement announcing the end of their professional relationship, with Minogue commenting that the break had been timed to coincide with the release of the
Ultimate Kylie album and the launch of
Showgirl - The Greatest Hits Tour. However the split was to be short-lived, with Baker back on board with Kylie by late 2006. The tour was intended to be the most extensive of her career, and anticipated a total audience of more than 700,000.