Native Instruments, the Berlin based music software company behind plugins like Kontakt, Battery and it’s flagship controller/workstation Maschine, has entered preliminary insolvency proceedings in Germany.
That sentence alone sounds scary, so let’s slow it down and talk about what it means.
What Preliminary Insolvency Really Means
Preliminary insolvency does not mean Native Instruments is shutting down today. It means the company is having some financial issues and has asked the court for help.
Basically, they need a bail out. This generally involves; finding new investors, selling parts of the company/assets and or restructuring…Sometimes, selling the company off as a whole.
This process gives a company time to breathe. The goal is to figure out if the business can survive in a new form. Employees often keep working. Products usually stay online. Updates might slow down, but nothing is stopping overnight.
That said, it also means the company could not meet its financial obligations without help. That’s the red flag.
Why This Hits Producers So Hard
Native Instruments plays a huge part in many music creators setups. Kontakt libraries power film scores, and games. Maschine is the main creative hub for a lot of beat makers. Traktor is still used by working DJs around the world.
When a company like that struggles, the fear isn’t about today. It’s about next month…Next year. People start asking questions like:
- Will my libraries still work?
- Will updates stop?
- What happens if ownership changes?
That uncertainty is what makes this news heavy.
How The Soundwide Era Fits In
Over the past few years, Native Instruments was grouped together with iZotope, Plugin Alliance, and Brainworx under a larger brand called Soundwide.
Many users felt the gut punch at this very moment. Product direction felt unclear. Long time customers started saying the company felt more focused on pricing and bundles than on fixing and improving core tools.
Those complaints didn’t cause insolvency on their own, but they point to a deeper issue… losing trust over time.
So What happens To Your Plugins and Sound Libraries Now?
Right now, everything is working as normal… Your software still works. The licenses are still valid. But long term support depends on what happens next. Again, that’s pretty scary for most.
If parts of the company are sold, another company could take over development. That can be good, bad, or somewhere in between. The value of Native Instruments’ products is still very high, which means buyers will be interested.
Take a Deep Breath…This Isn’t The End YET
Some companies come out of insolvency much more focused..better? At this stage, it’s really too early to know what happens next. For producers, this is a reminder to pay attention to who owns the tools you depend on. Software isn’t just creative gear anymore. It’s business infrastructure. And when that infrastructure shakes, people notice.
What are your thoughts? Let us know in the comments!
