The theatre urgently needed to replace its counterweight system, used to raise and lower scenery, or risk losing productions such as the Royal New Zealand Ballet to Invercargill.
"We are the only major theatre in New Zealand which has not upgraded its counterweights to a standardised system, and as a result we are being bypassed, in favour of Invercargill," he said.
With only 24 counterweights, the theatre was well down on the 47 required by the ballet and the 55 for opera productions, Mr Lovell said.
While the ballet has confirmed it will perform at the theatre this year, two of the three scheduled performances for 2010 would be cancelled unless the problem was addressed, he said.
"Dunedin people are seeing only half the effects, compared to people in other centre."
An estimated $500,000 was needed to replace the existing system, and the Otago Theatre Trust had raised close to half the required amount.
An approach to "other funding agencies" would be made in the coming months, he said.
"We hope to install the new counterweight system next summer. It is important for the future of the theatre."
Helping ease the financial pressure for the theatre were the thousands of people buying records, CDs, DVDs, videos, cassettes, paintings, sheet music and jigsaw puzzles at the second annual Anything But Books Sale, which is run separately from the annual Regent 24-hour Book Sale.
More than 100 people were outside the theatre before the 9am start, and most "made a beeline for the record section", he said.
A provisional total of $9500 was raised from this year's sale, an increase of $2000 on last year's first such sale.
The Regent 24 Hour Book Sale will be held on May 15-16.
