I attended a music event a few days ago after I was invited by a friend. To participate properly I had to switch from my laptop to my personal computer. The music was being streamed by a dj and ranged from Queen to Zeppelin. The location was a little joint known as "buddy's bar", that had about 10 - 15 people in there listening.
Everyone there was rocking out either with the dance balls available or their own animations. An interesting thing is how much interaction there is between the avatars attending the event. There is constant socializing, most of which actually concerns what is being streamed at the time. The DJ also had a part, often interrupting the songs with his own dialogue and comments on what everyone was doing. While it feels really awkward at first to make your character react to the way you're feeling in real life, the social interactions allow for the process to work.
As I write this I am attending a John Mellencamp concert, of course it is not live, but it is still his live streamed music. This event is more entertaining then the bar which had a DJ, you can notice more time went in to planning the concert. The avatars are up on stage, dressed like their particular musicians and playing along with their instruments.

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