David, you are correct that a license from a given Society only covers THEIR catalog.

There are two types of "blanket licenses" one for recorded music and one for live performances. I am not POSITIVE but I believe for about the same money you quoted, you get both.

BUT...the vast majority of smaller venues are exempt from the recorded music side of things as has already been pointed out in this thread.

However, even if a venue needed BOTH and had to pay the same rate for both...licensing from BMI and ASCAP would cost about $1,300 annually or about $3.70 per day and I think that clearly qualifies as "chump change." (SEASAC has a tiny share of the market and the odds that one of their people would show up at a night spot and hear one of its songs being performed are very small).

Remember, the venues don't HAVE to have either live or recorded music. So, if they DO want it, it must be because they think it helps their business (conversely, their business would be hurt without it) so since the music is the PROPERTY of someone else, the venue owners ought to pay for it.

Finally, I would GUESS...and it is nothing more than a guess...that only a TINY, TINY percentage of restaurant/club owners voluntarily obtain blanket licenses. Their attitude is...if I get caught, I'll get one."

Personally, I think that the "Nothing is illegal unless you get caught." mentality is a pretty sad commentary on our society.

Just my 2 cents.

Best,
Jim