Unfortunately, most places, including my butcher, fork out for the PRS (aka thieving bastards) licence. The butcher, since you ask, has a radio playing, hence he needs the PRS licence.
(Phil) I don't see why musicians shouldn't be paid for any public performance though I don't know the scale of charges. Yes, I am in the MU. I would have thought you would have been more put out by the cost of a music licence from the local council, for which you receive bugger all except a piece of paper and a bill.