This is a typical Primetime DRM reference implementations workflow that features both the command-line tools and the license server:
Create a DRM policy using the Policy command-line tool.
Encrypt content using the Packager command-line tool.
Deploy the reference implementations license server.
Upload a video player to a web server.
Use the uploaded video player to acquire a license and play your encrypted content.
As this typical workflow uses both the command-line tools and the license server, you will want to install and configure both of those components before you proceed.