Yes, true, but due to special effects.
According to Box Office Mojo, 'Phantom' cost $70million, 'Rent' cost $40million, 'Producers' was $45million, 'Chicago' was $45million, and 'Moulin Rouge' was $50million.
Now non-musical movies: 'Brokeback Mountain' cost $14million, 'Capote' was $7million, 'Crash' was $6.5million, and movies with music 'Walk The Line' was $28million and 'Ray' was $40million. Special effects films 'King Kong' was $207million and 'War of the Worlds' was $132million.
So compared to non-musical, non-special effects flicks (and I gave you Oscar contenders), they are significantly less to produce than a musical.
"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