Do I have to purchase the joomcial separatly for musicity template?

I bought the music city template. However, I am not seing the joomsocial profiles like it is on display on the demo menu.

Yes Jomsocial is its own extension and does not come included with the Musicity Template. The template just provides a theme build to work with jomsocial.

WOk I just purchased jomsocial and installed it. How do I setup the site to display the same dummy pictures on the demo.