She's watching kabuki right now.

Literal

She [topic-は] now, kabuki [object-を] is-watching [right-in-the-middle-of-doing-ているところ] is.

観る (with the kanji 観, vs. the everyday 見) signals more deliberate, attentive viewing — performances, films, sports events. In handwriting and most casual contexts, the simpler 見る covers everything; switching to 観る adds a sense of formal attention. 歌舞伎 is one of Japan's three classical theater forms (alongside 能 and 文楽), with origins in early 17th-century Kyoto. Modern performances run several hours, often with English subtitles available, and the Kabuki-za in Ginza is the flagship venue.