As AlphaTheta’s Serato Buyout Is Blocked, What’s Next For DJ Software?

AlphaTheta has just been blocked from buying Serato, in the latest twist in this long-running saga, which I first reported on almost exactly a year ago to the day – more about that in a second. In this piece, though, I want to look further, taking a step back to try to understand why AlphaTheta was attempting this, taking a high-level look at the state of the DJ software industry today and why so many DJs are frustrated by it, and finally, offer seven wishes for a clearer, simpler DJ software world that would better serve all DJs, both pro and casual.

So what’s the Serato takeover news?

In a press release, the Commerce Commission in New Zealand (where Serato is based) has said that it is “not satisfied that the merger would not have the effect of substantially lessening competition in the markets for DJ software and DJ hardware … we could not exclude a real chance that the merger would result in a substantial lessening of competition for DJ software, resulting in price rises to consumers and/or a lower quality software offering.”

In other words: This would likely have been a bad deal for DJs.

A similar investigation is currently happening in the UK, and while it is unclear to us whether AlphaTheta can find a way around this ruling and the UK’s Competition and Markets Authority (CMA) ruling should it also go against them, this is at very least likely to delay the takeover further.

AlphaTheta has since released an official statement regarding the ruling. Basically, on the face of it, it doesn’t seem like they are up for the fight to turn it around in any case.

The weird world of DJ software

Something we’ve been increasingly thinking about recently here at the school is why DJs (and therefore, of course, our students here at Digital DJ Tips) get so confused and frustrated by the DJ software world. Rather than DJ software making their lives easier, we instead observe people learning this hobby finding themselves spending far too much time trying to make sense of the right path for them through the current DJ software environment.

DJ like a pro using ANY set-up: The Complete DJ Course

Here’s the big, overriding issue: DJing is done on hardware, but for various reasons also requires software, and there is a confusing imbalance between the two right now. The obvious solution, then, is to move towards a world where established, respected and loved companies provide both, with seamless workflows, great features and so on, removing all of this confusion. And we are certainly not there yet. Here’s where we are now:

Native instruments has Traktor and a range of hardware that works with it. But it’s been underinvested in and so fallen behind, something the company may belatedly be trying to fix with the recent release of Traktor Pro 4.

The huge inMusic corporation has Denon DJ, Rane and Numark. It has developed its own platform, Engine DJ, that some of these brands use, but it is not a complete DJ platform, and so these brands historically have often licensed Serato as a software partner to fill the gaps. Can you see why they are so hellbent on stopping this takeover now?

So what of the other names? Well, Algoriddim’s Djay Pro tries to work with a range of hardware, with varied degrees of success, but ultimately, Algoriddim is through-and-through a software company. That said, it is close to Apple, especially its Vision Pro concept.

And VirtualDJ? This long-running company makes software that is famous for working with pretty much anything you can plug into it, a feat in itself, which is the way it gets around having few formal partnerships and total lack of its own hardware.

The background to the AlphaTheta takeover attempt

So then we come to AlphaTheta. It dominates in the DJ hardware world, and while some of its most popular hardware is for Serato, it has in recent years developed its Rekordbox platform to be the natural software for its products. Yet the company hasn’t had everything its way: Turns out lots of DJs really love Serato, and don’t want to swap, and the company’s aggressive subscription-only pricing and other business practices are not winning Rekordbox any new friends.

Seen in the context of all of this, AlphaTheta’s wish to buy Serato is understandable: If you can’t beat ’em, join ’em, basically. But it is also easy to see why this may not be good for the DJ industry: By our own numbers, after the merger AlphaTheta would control roughly three-quarters of both the DJ software and hardware markets. History tells us that kind of situation doesn’t benefit consumers, and this is, in a nutshell, what the New Zealand Commerce Commission has concluded, too.

What needs to change in the DJ software world?

DJs want fair pricing, good features, reliable hardware and software, and ease of use. They want the tech stuff to get out of their way so they can concentrate on the creative side of DJing. At the moment, though, a combination of a weird market environment (see above) and, frankly, often poorly performing, dated and confusing software, means they’re not really getting this.

So as a DJ school that teaches thousands of students a year and therefore has an “on the ground” opinion here, here are some ideas about what we think should happen instead, not only in this case, but in the next few years in the DJ industry. Some of it is obvious to us, some may never happen – but let’s go through our seven ideas anyway…

7 Industry Changes We’d Like To See

1. AlphaTheta to give up on buying Serato and buckle down on Rekordbox

We just can’t see how this takeover could ever benefit DJs. We think the commissions are right. Instead, AlphaTheta should concentrate on making Rekordbox a platform the others should be scared of, something it isn’t… yet.

Read this next: Rekordbox 7 Officially Released By AlphaTheta

2. Somebody else to buy Serato

A big hardware company that can integrate it fully with a great range of DJ hardware. Someone like Roland, for instance? They are an industry giant in adjacent sectors, have the money, and have a track record of making DJ gear for Serato already. Serato needs to be part of a company that makes hardware!

3. inMusic to fully develop its in-house Engine DJ platform

We’re talking not only a prep tool for its standalone DJ gear, but also a proper DJ program that can work with inMusic’s controllers. Frankly, the company has almost certainly been overplaying how hard this would be to do as part of its pitch against the Serato takeover by AlphaTheta, but no DJ hardware company that big can truly expect long-term success without a full-stack, in-house software solution of its own.

4. Traktor to continue its renaissance with new features and hardware

Native Instruments, Traktor’s owner, has a lot of its own music production hardware and software too, and so Traktor as a platform could and indeed should fit nicely in this ecosystem. That platform is an OG in this game, and is currently looking better than it has looked in years. With quite a lot of dissatisfaction in the software market right now, this could be its moment.

5. Apple to buy Algoriddim

Read this next: First Look At Algoriddim Djay Pro’s Apple Music Integration

Wouldn’t it be good to have a DJ platform native within all Apple computers, phones and indeed Vision Pro and its successors? At a stroke this would give Algoriddim a permanent hardware partner (and yeah, quite a good one at that!) and a defined niche. Tim Cook has visited Algoriddim at its HQ, and Algoriddim’s CEO has actually demoed his software at an Apple keynote, so come on guys, you’re practically married already…

6. VirtualDJ to simply continue to do what it does

Every industry needs a disruptor, right? This company is one. It isn’t for everyone, but it has consistently shown what a fleet-of-bart, lean software company can do in the DJ sector, and additionally is well loved for treating its customers fairly over the years. Please though, fix your name! (VDJ Pro would sound SO much better than VirtualDJ – to us, anyway).

7. DJs to play their part by being platform-agnostic

Talk to any working DJ who plays a variety of gigs (ie not just in clubs, where Pioneer DJ gear truly dominates) and they’ll laugh if you suggest they use the same hardware and software for all of them. It just doesn’t work like that. While both are important, it’s far better to learn how to DJ first, and learn your gear and software second. The companies win if they can make you feel competent on their gear, but like a beginner on everyone else’s.

Imagine if someone managed to convince you that when you learn to drive, you only learn one make and model of car – Wild idea, right? It’s the same with DJing. (It’s why in our flagship DJ training, The Complete DJ Course, you see us using all types of DJ gear and software, and why the course teaches you to be confident DJing on any gear and software). Make sure you don’t fall into the trap of learning on only one piece of gear because it seems easier – it’ll come back to bite you.

Finally…

So what do you think? What are your biggest frustrations with DJ software and how it works with hardware now? What do you think of our seven suggestions? Got any to add? Let us know in the comments under the video or below.