http://muppetnewsflash.blogspot.com/2007/01/muppet-show-season-two-dvds-are-on.html
I'll start by getting the big news out of the way: "The Muppet Show: Season Two" has officially been put onto Buena Vista Home Entertainment's schedule for "Summer 2007" (you can find moure information about the 24-episode, 4-disc "special edition" release
right here). Whoopie! I talked with people at Disney, it is true. It is coming!
Now you may wonder what took so long here. We all know there are a lot of legal clearances needed for this show. No one back in 1977 thought about home video releases of television episodes – and especially not a simultaneous home video release of 22 complete episodes. All the music has to be cleared (and some licensed). The season one set suffered from some edits because they were just not able to get some of the rights; and as the show progressed from season to season the problem of music rights only gets stickier as the show used more and more songs (and more well-known and expensive songs). Let's hope the extra time allowed them to get everything in line for these episodes. But aside from the legal stuff, they have to digital-transfer all the episodes and clean 'em up (unlike modern shows, putting these episodes on disc and having them look good isn't a simple drag-and-drop process). They also have to create bonus features, menus packaging and such. For example, with season one they had to write all the Muppet Morsels for each episode (which written by Jerry Juhl, Craig Shemin, Dave Goelz and Michael Dixon). Plus there is the whole marketing aspect of such a product. Disney knows what they are doing when it comes to making money with their creations. They know when is the right time to release a product so it can do the best. They study consumer buying trends, market competition, and their entire slate of releases to find the best time of year to release a title on DVD. Their may have been some hold ups and delays, but they know what they are doing. They know waiting 20+ months is better than pumping out shoddy release quickly and they know that waiting 5-years and spending millions of dollars to make a DVD so cool your head explodes isn't the way to go either. It's been a frustrating, and long, wait, but in the long run it will be worth it.
Also the wait we've had to "suffer" from season 1 until season 2 isn't that outrageous to begin with. Many TV shows on DVD have just as long (if not longer) waits between seasons. "Mad About You" has had a 4-year wait between the release of season 2 and the upcoming season 3 release (set for next month). "Malcolm in the Middle" is going on 5+ years since its season 1 set was release and there no future releases in sight. "The Simpsons" had a little over a year between seasons sets early in its DVD run. Things take time. And remember when the episode first aired back in the 1970s there was a 19-month gap between conclusion of season one (episode 24) the conclusion of season two (episode 48). So a 18-22 month gap for the DVD releases is not far off. It took 345 months from conclusion of Season 1 until the release of the complete first season appeared on DVD. And it looks like it will be about 345 months from the end of season 2 until it comes to DVD too.
And for the record, Disney didn't lie when things in development didn’t come to be. It is very common for projects in development to not come to fruition. There are tons and tons of projects, even from the days of Jim Henson, which never came to be. It's just in today's day and age we know about these "in the works" things long before we probably should. Many of Disney's unfulfilled projects weren't ever officially announced to begin with. There have been tons of Muppet pilots that never saw the light of day, and tons of movies have been written that never came to be. It's part of the business.