Pioneer and Serato: An Acquisition That Unites Two Big Name in Dj-ing

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AlphaTheta Corporation, who owns Pioneer DJ, acquired Serato. The unification of these two powerhouse names in DJ-ing, is what Music Radar calls the next logical step between the two entities. 

After all, they reason, Pioneer DJ’s hardware controllers and Serato’s software are a natural match.  In addition, Serato also develops various music production tools such as Studio, Sample, and Pitch ‘n Time.^[i]

As previous colleagues and now partners, both have been working together to determine how to explore fresh avenues for the industry. In particular, their leadership thinks technological innovations are imminent from their combined efforts, which will benefit the DJ community. ^[ii]

This isn’t the first big merger announced this summer in the music industry. This follows Moog Music’s recent acquisition by music conglomerate inMusic, which owns various renowned brands in DJ and professional audio equipment like Akai, Denon, Numark, Alesis, M-Audio, Marantz, among others.^[iii]

Plus, both Pioneer and Serato have had busy times with recent product launches. Serato recently unveiled Serato Studio 2.0, its new digital audio workstation (DAW), while Pioneer DJ’s CDJ-3000 gained the ability to stream Beatport music through StreamingDirectPlay. Pioneer DJ also introduced the DJM-A9, a new 4-channel mixer, and the OPUS-QUAD, an all-in-one DJ system, earlier this year. ^[iv]

Moreover, it’s not a done deal. Dan White at DJ Tech Tools explains that in New Zealand, where Serato is headquartered, any foreign entity, including a Japanese company like AlphaTheta, must seek approval from the Overseas Investment Office (OIO) before making substantial investments in business assets within the country. This requirement also applies to acquisitions of New Zealand-based companies that possess such assets. The approval process typically involves demonstrating the transaction’s benefits to New Zealand, ensuring it brings value to the country in some form. This regulation ensures careful consideration of foreign investments and their potential impact on New Zealand’s interests.^[v]

What Does This Mean for Serato Users? 

However, it’s a tricky merger, too, as Digital DJ Tips points out. The statement that came out about the merger says that they will continue to operate as independent entities. That means any existing collaborations will stay as they were. 

But what about later? For example, the DJ hardware company (Pioneer/AlphaTheta) will realize they have two software brands at some point. Since they provide the same things, why have two?^[vi]

For example, Peter Kirn writes on CDM that Pioneer DJ’s Rekordbox controller/software offerings and the combination of Serato hardware/software have substantial overlap, even when using Pioneer’s own hardware. However, Serato brings unique features that Pioneer DJ lacks, such as live visual/video capabilities and AI-based source separation. Additionally, Serato offers significant tools for sampling, pitch manipulation, and time manipulation. Notably, they provide the distinct Serato Studio production tool. ^[vii]

Also, Serato has other partners, like Roland, Reloop, Numark, and Rane. So, after the acquisition, these other brands will have to negotiate with their competitor to get software licenses for their custom hardware products. 

Not so great for them, huh? In fact, one might think that these Pioneer competitors would rather not produce Serato controllers. And why would Pioneer stand in the way of that?^[viii]

So, sure, it’s exciting. But what does it really mean for the future? Innovation and acceleration or consolidation and loss of competition? 

Time will have to tell. 

^[i] Pioneer DJ owner AlphaTheta buys Serato, bringing two of the biggest names in DJ hardware and software together (2023). Available at: https://www.musicradar.com/news/pioneer-dj-serato-acquisition (Accessed: 14 July 2023).

^[ii] Pioneer DJ owner AlphaTheta buys Serato, bringing two of the biggest names in DJ hardware and software together (2023). Available at: https://www.musicradar.com/news/pioneer-dj-serato-acquisition (Accessed: 14 July 2023).

^[iii] Murray, E. (2023) Pioneer DJ’s parent company AlphaTheta Corporation acquires Serato, DJMag.com. Available at: https://djmag.com/tech/pioneer-djs-parent-company-alphatheta-corporation-acquires-serato (Accessed: 15 July 2023).

^[iv] Murray, E. (2023) Pioneer DJ’s parent company AlphaTheta Corporation acquires Serato, DJMag.com. Available at: https://djmag.com/tech/pioneer-djs-parent-company-alphatheta-corporation-acquires-serato (Accessed: 15 July 2023).

^[v] White, D. (2023). Alpha Theta (Pioneer DJ) Just Aquired Serato Audio Research (Serato DJ). Available at: https://djtechtools.com/2023/07/11/alphatheta-pioneer-dj-just-acquired-serato-audio-research-serato-dj/ (Accessed: 14 July 2023.)

^[vi] Breaking: Pioneer DJ Buys Serato – Digital DJ Tips (2023). Available at: https://www.digitaldjtips.com/pioneer-dj-buys-serato/ (Accessed: 15 July 2023).

^[vii] AlphaTheta, parent of Pioneer DJ, acquires Serato – CDM Create Digital Music (2023). Available at: https://cdm.link/2023/07/pioneer-dj-buys-serato/ (Accessed: 15 July 2023).

^[viii] Breaking: Pioneer DJ Buys Serato – Digital DJ Tips (2023). Available at: https://www.digitaldjtips.com/pioneer-dj-buys-serato/ (Accessed: 15 July 2023).