[bitwize]

It sounds like you're describing a vaudeville theatre or musical revue. These were way, way more common before movies and television came to dominate American entertainment (and before the electric guitar and synthesizer allowed for "big sound" from a small band or single performer). They are enshrined in our movies because many of the biggest early American movie stars, like the Marx Brothers, crossed over from vaudeville. It's much less common today, but I'm sure some venues of this type exist somewhere. Similar forms can be found with more frequency:

1) Comedy clubs, where there is an emcee who introduces various comedians to perform their routines

2) Dinner theater, which typically features tables arranged around a central stage. Full meals are served, and a play (typically a musical) is performed while you eat and drink.