dramama611 said: "Yes, if all...or even most productions were released, I think that ticket sales would lose. " We'll wait for the release!" "
That may be the case. But i wouldn't call it a certainty. I am old enough to remember similar things being said when movies starting being released on VHS for the first time so that people could view them at home. There was lots of handwringing about how people would never go to the cinema anymore, and just wait for the video to come out. But people still kept going to the cinema, even though it is the exact same film that they could see at home, because going out for an evening was a social outing, or because they didn't want to wait the extra four months to see something that everyone was talking about. And then additional people rented the videos at video stores, and additional people purchased them at home, so additional revenue streams were added on.
With theatre, there is even more of an incentive to see it live, since that experience is different from seeing it on film (being able to focus on either the whole-stage choreography or one actor's expression, being 'in the room where it happens', etc., so just as people keep seeing movies in cinemas, it seems to me that they would probably also keep seeing live theatre for all the same reasons plus the additional ones about the advantages of it being live.
And as the movies for Chicago and Phantom showed, they not only didn't cannibalize the ticket sales for those shows, but they seem to have even bumped them up, as more people became aware of the stories and music, and then wanted to go see the shows live. Lots of shows have had bootlegs posted online that people can watch for free and yet attendance is soaring. Think of all the people who saw the movie of Frozen who will still go to see the stage show. It's like that, but with live vs. videotaped. I think it is quite possible that DVDs would drum up interest and possibly increase sales rather than decrease them, plus provide an additional revenue stream towards recoupment, making it a safer investment to produce shows, and maybe even allowing smaller, quieter, riskier shows to be produced if there is less requirement that they have to recoup all their investment in the broadway production.