"Magic" became Newton-John's biggest Adult Contemporary hit to date, spending five weeks at the top of that chart. It was also her biggest pop hit until "Physical" ruled the Hot 100 for ten weeks beginning in November 1981. Billboard magazine ranked "Magic" as the third most popular single of 1980, behind only "Call Me" by Blondie and "Another Brick in the Wall, Part II" by Pink Floyd. The song also reached #4 on the Australian charts and #32 in the UK.
The B-sides vary, depending on the label: "Fool Country" (also from Xanadu but not on the OST) is the B-side of the MCA release; "Whenever You're Away From Me" (with Gene Kelly) is the B-side of the Jet release.
"Magic (Peach & Murphy remix)" is a new remix of the 1980 song. In May 2011, the song was remixed by two Australians, DJ Dan Murphy and Steve Peach, to create a brand new dance version of the song. Olivia went back to the studio to re-sing the vocals; the new version is uplifting and very radio-friendly. The version was sponsored by WACCI, a humanitarian group.
Everybody working on this project has volunteered their time and talent, all proceeds are being donated to Olivia's charity, the Olivia Newton-John Cancer and Wellness Centre.
Olivia was presented the world premiere of the song on Australian Dancing with the Stars on Sunday May 22, 2011. The song was released exclusively on Australian iTunes, also on Sunday 22 May.
A video was shot for the new remix in Sydney, Australia, in an attempt to break the Guinness Book World Record for largest cast in a music video by featuring 350 people. Newton-John does not appear in the video, which was directed by DJ Dan Murphy.