Recording and selling DVDs of dance recital - music rights

Hi, I've been asked (and agreed to) videotape a dance recital and put it on DVD which would be sold to parents. The dances are to current, copyrighted songs.

I understand music rights pretty well and I know you can't use music w/o obtaining permission. What about the case where the songs are recorded through a consumer video camera - would it be illegal to distribute copies when the audio quality of the songs is severely degraded? This came to mind because I it used to be more acceptable (or at least distributers didn't worry as much about it) to copy VHS tapes and cassette tapes because every time it was copied it lost a ton of quality. Would this apply in this case of the audio for the recital?