Royalty structure for live performance of cover tunes differs from your assessment. A single iTunes purchase allows up to 5 individuals to share it privately at will. That is all.
The royalties for playing cover tunes publicly are not overly burdensome quantitatively, but they do tax patience when the letter of the law is followed; when the practical end of songwriting for a living plays out. $30,000.00 is excessive, to be sure, but this is because the venue is withholding due royalties.
BMI, ASCAP, et. al try to ascertain the nature and extent of cover tunes playing in various venues and level a fee straight up. Whether the music is publicly played through a juke box, or by a live band, as long as the venue is using the music to attract business, the songwriters have in place a mechanism to be compensated. Without question human nauture is not at its best in this matter, whether it be the proprietors or the enforcers of these fees. There is wrongdoing against the songwriter on both levels, but a few of them, who also have ways to twist arms, make a princely sum through their efforts.
lol. SO if my whole family listened to the song, we are in violation? lol
I'd love to see some RIAA enforcement types pulling over carloads of 6 or more thugs listening to their
rap at 120 decibels to check where they bought their "music". Really, I would.