There is little-to-NO money to be made from recording productions for DVD. In fact, you LOSE money. Lonny Price told me that to film the CONCERT version of CANDIDE it costs $2 million and they were lucky if they got HALF of that back.
To film a production, there are SO many costs. A film crew & creative team (for the taping) is an expense. Paying all the stage performers & creative team (for the stage) is an expense. Paying the writers is an expense. Paying for DVD production & distribution is an expense. And if you do any marketing, that's an expense. And if you use clips in your marketing, you have to pay the actors an additional cost.
It's incredible that there are producers out there who are willing to sacrifice their money to make recordings of productions happen. Although if I were that rich, I'd do it, too.
I've said it before in other threads regarding bootlegs and I'll say it again:
Yes, theater is meant to be seen LIVE and watching a production on DVD defeats the purpose of theatre. However, in my opinion, the benefits of a DVD recording are far superior to the minuses. It preserves the show, it promotes the show, and it potentially reaches an audience that would have never otherwise have seen it.
"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