The School of Pharmacy at Purdue has been doing streaming audio/video for several years. About 2 years ago, mp3 podcasting was offered university wide. This year, the School of Pharmacy has added video podcasts.
With the School of Pharmacy we have seen some drop in attendance, but the attendance drop is usually associated with a big test in some other class. Early on, some professors opted not to podcast their lectures because of this, but now most of them are using the service. Some faculty members aren't concerned about attendance dropping as long as the students are learning, and some faculty members are concerned because they see it as a professionalism issue. The faculty members that are concerned have opted to either have pop quizzes in their classes, or podcast only audio instead of audio and PowerPoint/Document camera video.
As far as when to post the lectures, I use an automated system to get them online as soon as possible. When we were just doing streaming, lectures would be online about 10 minutes after class. Now that we're doing mp4, there is a delay because of the transcoding. Lectures will be online usually within 2 hours of class being over.