Many plays, such as Rosencrantz and Guildenstern are Dead, are made into movies and they end up on DVD in this manner. But why don't they just film Tom Stoppard's Arcadia (recommended, by the way; it's playing at the Folger and it's one of the classic plays of our time). A look at Amazon doesn't yield much. Nor does a search on "Edward Albee."
I can think of a few possible factors:
1. It wouldn't be very good. (This doesn't stop most of what is put out on DVD. Furthermore the highly complex genre of opera on DVD works just fine and has become the industry standard.)
2. There wouldn't be much of an audience. Yet you could sell memento copies to people who saw the plays, a few plays on DVD might hit it big, and in any case they wouldn't cost much to produce. There are plenty of niche products on Netflix.
3. It would squash the demand for live performance. Really? Most people don't go to the theater anyway. Those who do, in this age of 3-D cinema and TiVo, presumably enjoy live performance in a manner which is robust. It is more likely that DVD viewing would stimulate demand for the live product. Besides, they put these plays out in book form and no one thinks that is a big problem.
None of these answers seem to work. So, to repeat the question, why don't they put more theatrical plays out on DVD?
Addendum: Could it be they are holding out for the sale of movie rights and that profit is maximized by restricting alternative viewing options?