Native Instruments in trouble

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Native Instruments in trouble

Unread post by EB5AGV » Fri Sep 06, 2019 3:28 pm

I am really worried as I have invested lately quite a lot on NI gear and software as I thought they were a reliable company...

Now I am not so sure Komplete hardware and software nor Maschine will be such great tools in the future :think:

I hope it is not another Kore-like bluff! :naughty:

What do you think?

Jose
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Re: Native Instruments in trouble

Unread post by Saul » Fri Sep 06, 2019 3:41 pm

For anyone that wasn't aware of this news:
Berlin, August 29, 2019 – Native Instruments, the world’s leading provider of software and hardware for computer-based music production, announced today a plan to centralize their global business operations, which includes a headcount reduction of 20% across all locations. The key reason for this difficult decision is to create the right organizational setup to focus on the development of a new, unified and fully integrated platform on which the company’s entire portfolio of products and services will be available next year. This change comes despite growing revenues in 2018 and the first half of 2019, but as a response to an increasing cost structure due to the company’s previous divisional setup and multi-brand approach.

“Today is a very emotional day for the Native community. We’ve been driving innovation in music creation since the 1990s. First through software instruments, then by expanding to an integrated ecosystem with complementing hardware and now by creating a unified platform experience for the modern music producer,” said Daniel Haver, the company’s CEO and co-founder. “To make this transformation successful, we needed to adapt our strategy, including a centralized functional setup that can support our vision of ‘One Native’. Unfortunately, this also means we had to make some tough decisions and part ways with a number of employees. This has been the hardest part of this transformation,“ he added.

Global headcount reduction of 20%

As a consequence of the company’s newly centralized organization to focus on its future strategy, Native Instruments had to make the difficult decision to reduce its workforce by around 100 employees across all sites. With most of the affected employees located at the company’s headquarters in Berlin, the departments that were impacted by the consolidation include Sales & Distribution, Marketing & Product Management, Administration and Engineering. All employees were informed about these changes on Thursday, August 29, 2019. The company regrets the impact this has on their employees, their families and the community. In addition to severance packages and outplacement services, Native Instruments has also established contacts with other Berlin-based companies that are currently looking for highly qualified personnel.

“This was the most difficult decision we had to make in our entire history, as our past successes have been enabled by the work of some of the best and most passionate people in the music industry. We thank all employees for their commitment, hard work, and their high degree of loyalty to Native Instruments. We are fully committed to doing all we can to take care of our employees impacted during this difficult time,” said Daniel Haver.

New platform starting in 2020

Recognizing changing customer behaviors worldwide, the aim of focusing on a unified platform strategy is to create an expandable commercial and technological basis for future growth in the digital music production area. For that, a new platform is currently being developed with the goal of offering new ways of accessing the company’s core products and services, as well as complementary ones from third-parties. The centralized platform will also include the company’s expanded portfolio of loops and samples, which is currently part of sounds.com, and will launch in 2020. The company’s previous divisional structure, functional and brand silos, did not allow for a successful implementation of this strategy up until this point.

“Customers today are expecting a seamlessly integrated experience when consuming and accessing creative goods and services. We are confident that we can offer music producers worldwide a unique and premium experience by connecting our existing ecosystem of award-winning software and hardware to a centralized online service,” said Mate Galic, Native Instruments’ Chief Innovation Officer and President. “In the past, we expanded in different product lines, which was also reflected in our organizational structure. Our platform vision, however, requires a much more collaborative approach, having all parts of the company work together towards one common goal.”
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Re: Native Instruments in trouble

Unread post by Saul » Fri Sep 06, 2019 3:53 pm

My take on all this is that the market has changed over the last couple of years. It has become incredibly competitive and perhaps Native Instruments have strayed too far into hardware when they should have concentrated on their core product which is software?

Also of course the German economy is tanking at the moment so that doesn't help matters.

Many companies are having to look at ways to streamline and row in on certain areas of development right now.

The whole music software business has pretty much reached saturation point. There are only so many emulations and synthesis methods out there and no matter which combination of samples or modelling you go with the end results are not that far removed from each other?

Same with hardware. How many variations of controller keyboard do we need?

So it is definitely a shame that NI are having to do this but if a stronger company emerges as a result it is still good news for us end users.
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Re: Native Instruments in trouble

Unread post by EB5AGV » Fri Sep 06, 2019 3:58 pm

Saul wrote:
Fri Sep 06, 2019 3:53 pm
My take on all this is that the market has changed over the last couple of years. It has become incredibly competitive and perhaps Native Instruments have strayed too far into hardware when they should have concentrated on their core product which is software?

Also of course the German economy is tanking at the moment so that doesn't help matters.

Many companies are having to look at ways to streamline and row in on certain areas of development right now.

The whole music software business has pretty much reached saturation point. There are only so many emulations and synthesis methods out there and no matter which combination of samples or modelling you go with the end results are not that far removed from each other?

Same with hardware. How many variations of controller keyboard do we need?

So it is definitely a shame that NI are having to do this but if a stronger company emerges as a result it is still good news for us end users.
I hope this change does not lead to a monthly-fee system, which I, as a hobbyist, would hate :hand:

The good thing IMHO is that this perhaps means they are not getting out new models so fast so our investment in hardware is longer lasting. But the Komplete package concept seems to be on a dead-end. Time will tell!

Jose
Jose Gavila

Yamaha DX7, TX81Z, DX11, 5x SY77, TG77, SPX990, SY85, A3000, AN1x, EX5, EX5R, EX7, MOTIF RACK XS, DGX660, Genos (and 1992' FJ1200 :mrgreen: )

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Re: Native Instruments in trouble

Unread post by Saul » Fri Sep 06, 2019 4:08 pm

The problem with 'KOMPLETE' is that the individual components cost quite a lot of money...as does the whole package and although buying the whole thing is cheaper it reminds me of the way SKY package their TV channels. You end up with 100 channels and might only ever watch 5 of them. They think that bundling all the other channels will con you into believing it is great value for money. It isn't.

Personally I have all the software I could ever want or need.

I have a good 88 note hammer action keyboard in the Casio PX-S1000 and through that, using it as a controller I also have access to a huge library of synths and other acoustic pianos.

This is what I was saying about the market reaching saturation point. Everyone is watching the finances these days. Unless you absolutely "need" rather than just "want" something new it makes sense to use what you have and get the best from it. Why splash the cash on something that may feel good at the time but in real terms won't actually get you further forward?
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Re: Native Instruments in trouble

Unread post by Derek » Fri Sep 06, 2019 8:16 pm

I'd say NI's problems are largely due to a combination of things, and my views concur with those above.

The first is trying to shove the whole expensive versions of Komplete down your gullet, when all I wanted was the full version of Kontakt; i.e. not the free version. I waited ages until Kontakt was on sale at 50% before I pulled the trigger, and I needed the full version of Kontakt for Ethera EVI (and a few other things since then).

So in my view they need to look at how they package things. Give Customers flexibility, and what they want at good prices and they will come.

Second is probably also a classic problem of too much diversification, and losing the focus on what you are good at. Or being good at several things, but spreading yourself too thinly. Look at Microsoft's troubles when they failed to anticipate the Smartphone market and decided they had to get into making the hardware....

Thirdly, taking myself as a "use case", I have two very good main synth keyboards (Kronos and Montage) that are also fantastic master keyboards, so I will never buy one of their controllers. I have a SHIT load of VSTIs emulating a lot of classic gear, so that rules out a lot of Komplete for me.

Komplete has a lot of other stuff I just am not interested in (orchestral content), so I just want some select things that I am interested (like Kontakt) at a good price.

I also think that NI were bonkers when they dropped B4II. It was one of the best modelled Clone wheels of the time but they dropped it and went down the sample route and the new Organ product sounded terrible (to my ears).

All companies have their peaks and troughs of course. Some years Vauxhall make more interesting mass market cars than Ford and vice versa.

I wouldn't worry too much about the future right now, as long as your software runs and you can license it. Nord stopped making/supporting the G2 Modular at least ten years ago. It is still working fine, along with its editor and still sounds awesome. The Yamaha PLG concept is long defunct but I can still run the editors.

I haven't tried it for a while, but I think I could still run NI B4II. But there are better things out there now.
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Re: Native Instruments in trouble

Unread post by parametric » Tue Sep 10, 2019 3:01 am

NI Just released THIS Statement, concerning the rumours . . . . .

https://www.kvraudio.com/news/native-in ... ness-46170

parametric
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Re: Native Instruments in trouble

Unread post by Saul » Tue Sep 10, 2019 9:30 am

parametric wrote:
Tue Sep 10, 2019 3:01 am
NI Just released THIS Statement, concerning the rumours . . . . .

https://www.kvraudio.com/news/native-in ... ness-46170

parametric
That is the statement I posted earlier Chris. Released on the 29th August.
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Re: Native Instruments in trouble

Unread post by parametric » Tue Sep 10, 2019 10:58 am

Hmm . . . .

I reckon I'll give up on this . . . .

Your sources are clearly higher up the tree than mine :lol:

Chris
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Re: Native Instruments in trouble

Unread post by Saul » Tue Sep 10, 2019 11:02 am

:lol: It's just that I get the press releases direct from the companies and then I post to the front of the site. Not always the case of course because there are plenty of companies I am not in contact with. Just a matter of checking the front end first and then if we don't have it post on the forum (Y)
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