It all depends on execution.
I saw a production of Charles Mee's The Trojan Women in college and they'd be running projections simultaneously with the action onstage of all sorts of different news footage and what not and I just had no clue where to look at certain points.
Another time (also college), a fella mounted his own adaptation of An Enemy of the People (set in modern times, of course) and opened the show with footage of the two main characters playing with their kids....trouble is, he decided to have the footage overlap on the walls of the set and so if you were sitting dead center, you had no idea what the crap was a-goin' on! I did because I was working behind the scenes and had a peek at some of the footage beforehand but for the rest of the audience, I can only imagine what the audience was thinking.
Butters, go buy World of Warcraft, install it on your computer, and join the online sensation before we all murder you.
--Cartman: South Park
ATTENTION FANS: I will be played by James Barbour in the upcoming musical, "BroadwayWorld: The Musical."