I know a little more about this, but won't breach confidentiality.
A&E did well with their broadcast of Cathy Rigby's PETER PAN. It actually sold well on VHS/DVD, too. A&E wanted to air more live events, but couldn't figure out how to do it. They actually planned to do SEUSSICAL, then it closed. Then they planned to tape the tour of SEUSSICAL...and that's when the network really fell apart. It was decided to scrap all plans for live entertainment offerings, and focus more on scripted programming content. That, too, didn't really pan out.
"The Spectacle has, indeed, an emotional attraction of its own, but, of all the parts, it is the least artistic, and connected least with the art of poetry. For the power of Tragedy, we may be sure, is felt even apart from representation and actors. Besides, the production of spectacular effects depends more on the art of the stage machinist than on that of the poet."
--Aristotle