I agree that Billie Jean is a reference to the world, but mainly the media. When he says she is a “beauty queen from a movie scene” it could be since the media portrays Hollywood as being all glitz and glamour he was enticed or “seduced” to make his dreams come true through his career.
“But you came and stood right by me
Just a smell of sweet perfume
This happened much too soon
She called me to her room”
The media “chose him” to be the center all of their focus and at one time everyone in society looked at him and wanted to be him. His family and friends warned him to be careful because they have a way of making lies seem like the truth.
For awhile he was on their side but they are not his “lover” meaning they did not help produce his career or “his baby”. They started reporting on false allegations hurting his career and they knew what they were doing. It’s very sad. It broke his heart too.
“My baby cried
His eyes were like mine”
“You know what you did
She says he is my son
Breaking my heart, babe”
He also refers to Billie Jean in “Wanna Be Startin’ Somethin’”
“Billie Jean Is Always Talkin'
When Nobody Else Is Talkin'
Tellin' Lies And Rubbin' Shoulders”