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Without a music licence, you are infringing copyright if you play live or recorded music in public and as such, you could be sued for damages.
A music license is when a copyright holder (you the artist) grants the right to use his or her work publicly, and in return receives payment via a flat fee and/or royalties based on an agreed contract.
The U.S. copyright law requires those that publicly perform copyrighted music -- including websites and other digital services that transmit music to the public -- to first obtain a license from the copyright owners of the songs performed.
A theatrical license is an agreement between a music user and the owner of a copyrighted composition (song) that grants permission to use the music in a play, musical, dance, opera, narration, or other dramatic performance. This permission is also called theatrical rights and grand rights.
In general, professional theaters pay at least $75 per performance of a full-length play or musical, and at most 8-12% of actual box office revenue. The up-front royalty guarantee is most regularly between $75 per performance and $250 per performance. These rates vary from one license to another.
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As we mentioned before, the music license refers to the agreement that allows the transfer of a music track for commercial use. On the other hand, music publishing is the management of the agreements that are made for a music track that is going to be used commercially.
The cost to license a copyrighted song can vary widely. The cost for a song from a small independent artist might be less than $100, while a track by a major artist or label can run thousands of dollars. Some licenses might also charge you a percentage of revenue instead.
In general, there are six types of licenses that someone can use for various purposes. They are: synchronization license, mechanical license, master license, public performance license, print rights license, and theatrical license.
To license music for a video game, it will cost around $600-$1500. The amount also scales up with the size of your market and budget as well as your source. If you don't want to be bothered by the price scaling you could also opt to purchase music along with all rights on platforms like House of Tracks.
The U.S. copyright law requires those that publicly perform copyrighted music -- including websites and other digital services that transmit music to the public -- to first obtain a license from the copyright owners of the songs performed.

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