I think the venue assumes royalty risk when it charges for admission for the music show...perhaps even if its a freebie with no cover charge.

When the licensing/royalty agencies choose to enforce their rights it can really cut down on the live music scene. See this sad Missoula-region story from two and a half years ago; http://ravallirepublic.com/news/local/article_cac3fb30-8104-11e1-b252-0019bb2963f4.html . Venues end up shutting down the music, local (small) musicians don't get royalties, and the agencies don't seem to care...