I was asked to provide a controller for bar/lounge and was going to use a DDJ-1000 however I realized that Rekordbox DJ isn't hardware activated. That being said will all visiting/performing DJ's have to purchase a Rekordbox DJ license to perform?
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Yes, any DJ connecting their laptop to the DDJ-1000 will need to have a full version of Rekordbox DJ activated.
From what I'm understanding something like the RX2 or Denon Prime 4 is more suited for your situation. DJs can just plug in their Rekordbox prepped sticks.
You can use the DDJ-1000 with DJAY PRO and optional with Spotify Premium, but it's limited. In this case the jog displays are working in basic mode, and not all DDJ-1000 functionalities are present. You can find an DDJ-1000/DJAY PRO example on YouTube.
Like Ves advised, I thinks it's best to choose another controller option in this case.