Spotify Founder Daniel Ek to Step Down as CEO, Shift Focus to Long-Term Strategy

Daniel Ek, the billionaire founder and CEO of Spotify, will step down in January to become executive chairman, the company announced Tuesday. The move comes as the Swedish streaming giant adopts a co-CEO structure to strengthen its competitive position and improve profitability.

Ek, who founded Spotify in 2006 and built it into a global streaming powerhouse with nearly 700 million monthly users, will now focus on capital allocation and long-term strategy rather than daily operations. “I will be more involved than a typical U.S. chairman,” he said. “Think of it like moving from a player to a coach.”

Analysts say Ek departs the CEO role “on a high note,” though his successors face a challenging landscape as Spotify contends with Apple Music, YouTube Music, and Amazon Music. Shares of Spotify fell about 5% following the announcement, though they remain up 63% this year.

Spotify remains the clear market leader, offering over 100 million tracks, but it continues to face pressure on profit margins as artists demand higher royalties and its ad-supported tier grows. Despite this, Spotify reported its first annual profit in 2024, aided by price hikes and cost-cutting.

Under the new structure, Gustav Soderstrom, currently chief product and technology officer, and Alex Norstrom, chief business officer, will serve as co-CEOs. The two have worked alongside Ek for over 15 years. “Norstrom is deeply interested in product, and I’m very interested in business,” said Soderstrom. “So we run this as a single team.”

Analysts are divided on the co-CEO model, which has been used by companies like Oracle and Netflix to manage increasingly complex global operations. Dan Coatsworth of AJ Bell cautioned that “too many cooks spoil the broth,” questioning the need for both an executive chairman and two chief executives.

Founded in Stockholm, Spotify revolutionized the music industry, helping reverse years of decline caused by piracy and falling CD sales. By 2024, global recorded music revenues reached $29.6 billion, with streaming surpassing $20 billion for the first time—half of it from subscriptions.

Ek’s new role cements his transition from visionary founder to strategic steward, as Spotify enters a new phase defined by AI integration, rising competition, and evolving media consumption.