At a private house party, usually not. If you're running a commercial business and anybody from the public can attend, then usually, yeah, you're commercially distributing the music/video/whatever. Similar to how bars/restaurants need a special subscription to cable/TV to broadcast, and why many bars have to charge a fee to broadcast a premium sports event, they're not supposed to just stream it or w/e. There's a little dumpy bar down the street from me and I go there randomly, and sometimes I get there at ~9pm and they want a $30 cover, which is fuckin nuts for the place (which is always no cover, it's a townie bar), but it's because they're broadcasting a UFC fight that night and it costs them like ~$1500 to broadcast because of the max occupancy.
It's common enough in a restaurant/bar for an employee to take over the audio and stream from non-commercial service, but yeah there have been lawsuits over it. Most streaming services/creators don't pay attention to small stakes, but if you're a big commercial business eventually they will.
But yeah your stream VOD can't play copyrighted music. This is why music from GTA gets cut out of VoD or people mute music audio on their streams. I think it's a little ironic that you're frustrated being a content creator that other content creators don't want their content used commercially in your content... or at least want to be compensated for it.