It most frequently refers to smaller venues, which may double as bars, especially featuring rock, jazz, blues, and folk music.
[1] The live house scene got a boost from the phenomena called Tokyo Rockers, a punk rock movement that started in 1978 by the opening of S-Ken studio venue.
In the 80s, the Japanese rock scene experienced the so-called band-boom stage, where amateur, indie artists, debuting at small live houses, were picked up by large record labels.
The live houses were reduced to a stepping-stone to further one's career and the establishments became part of the music industry cycle, contrary to the original purpose of being unique underground venues for rebellious bands.
[4] In recent years, similar establishments started to appear in big cities in Taiwan, South Korea, China and many of them are also locally called "live houses.
The quota requirement doesn't prevent the Live Houses from being competitive, evident in them often booking bands for a given night by having auditions beforehand.
These models can struggle, because unlike western consumer culture alcohol consumption is not assumed just because one is coming to listen to music.