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Led to a big dip in the arts as well.
Look at Tony Best Musical winners/nominees from the 90s. The only truly memorable ones (and probably the only ones still touring) are Rent (surprise, AIDS!) and Miss Saigon. Then a couple of Disney shows (Lion King and Beauty and the Beast) and that’s about it.
Starts picking up in 2001 again with Full Monty and The Producers…2002, Mama Mia…2003, Hairpray…2004, Wicked…2005, Spamalot…2006, Jersey Boys and The Wedding Singer…and so on. Nearly every season has had an amazing blockbuster show that has (or will have) staying power. The late 80s and 90s were a total rut for that.
I’d even say it started falling off earlier, circa 1979. What did we get after Sweeney Todd? The entire decade, best shows were Cats, Phantom, Joseph, Into the Woods and Les Mis. That’s about it. And a lot of people aren’t Cats-people.