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Don't think it's the same thing as watching a recorded film. A streamed theatre production is usually broadcast live from a theatre, with multiple cameras positioned to follow the actors and capture the action from different angles. The director (or whoever's handling the technical direction) cuts between cameras in real time, just like a television broadcast would. Audio is captured by microphones both on stage and in the audience, to give that sense of immersion. Sometimes there are fixed cameras on the sides to catch details, others that move around to give the viewing some dynamism.
Technically, the streaming platform receives the director's feed, compresses it, and sends it to your devices. A lot of theatres use specialized services that keep decent quality even with limited bandwidth. It all happens with minimal delay, often just a few seconds. Some productions let you rewatch the show for a few weeks after it airs, others don't - it depends on agreements with the actors and rights issues.
The biggest challenge? Making something seem natural when it's actually a performance built for a traditional stage. An actor might pause and look at the theatre audience, but in front of the camera they might have to repeat the gesture slightly differently so it lands better. It's not bad, but it's a hybrid experience: it's neither pure theatre nor cinema.
Have you ever watched a live play in streaming? So basically, cameras film the scene from multiple angles and you can follow the action in real time, even though obviously it's not the same as being in the audience. The quality really depends on the direction: some productions are specifically designed for the screen with cuts and zooms, while others just broadcast the stage as it is without any fancy tricks. I happened to watch a theatrical performance one evening from my couch and I had the ability to pause everything and rewind, which you can't do in theater, but I still missed that tension that comes from knowing everything happens only once.
The thing is, it's not really a passive broadcast like it might seem. A lot of platforms let you choose between different camera angles during the show, kind of like how you'd be sitting in a theater but with more options - you can switch from the front angle to a side angle if you want to follow a specific actor. Obviously it depends on the quality of the direction and the platform, but when it's done well it gives you more freedom than you'd have in a regular audience.
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