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Terry Teachout on why live theatre is in trouble with on-demand mentality threatening theatrical intimacy.

The house lights fade to black. The room falls still as an actor steps from the wings and speaks the simple words that set a plot in motion: "O for a Muse of fire." "Yes, I have tricks in my pocket, I have things up my sleeve." "This play is called 'Our Town.'" Suddenly the outside world vanishes and you're swept into a parallel universe of excitement and adventure, poetry and magic, fear and hope.

That's what it feels like to go to the theater and see a great play. But when did you last do so? A week ago? A year? Or do you now prefer to stay home and watch cable television or use Netflix NFLX -4.92%  to stream a movie?

If so, you're one of the reasons why live theater is in trouble.

Take a look at the National Endowment for the Arts' latest Survey of Public Participation in the Arts, the most statistically reliable study of its kind. Not only did "non-musical play attendance" drop to 8.3% from 12.3% of U.S. adults between 2002 and 2012, but attendance at musicals also fell, to 15.2% from 17.1%, the first time the latter figure has declined since 1985. That's really bad news. Musical comedy has always been live theater's bread and butter, the ever-popular fare that never fails to fill the seats. If fewer people want to see "Fiddler on the Roof" or "The Lion King," then the pillars that hold up American theater are crumbling.

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