Spotify founder and CEO Daniel Ek will step down from his role in January, the Swedish streaming giant announced on Tuesday. Ek will take on the role of executive chairman, focusing on long-term strategy and capital allocation, while Spotify adopts a co-CEO structure to strengthen operations and maintain growth.
Ek built Spotify into a global leader in music streaming, with nearly 700 million monthly users and over 100 million tracks. Despite its market dominance, the company faces competition from YouTube Music and Amazon Music, which offer integrated and Prime-linked services.
In his new role, Ek will remain closely involved with Spotify’s major decisions but step away from day-to-day management. He described his transition as moving “from a player to a coach,” emphasizing that he will guide the company’s long-term vision.
The co-CEO structure includes Gustav Soderstrom as chief product and technology officer and Alex Norstrom as chief business officer. Soderstrom will oversee global tech strategy and product development, while Norstrom will manage subscriber growth, advertising, and music, podcast, and audiobook operations. Both executives will report directly to Ek.
Spotify has faced ongoing pressure on profit margins due to rising artist payouts and growth of the ad-supported tier. However, the company continues to expand globally, with recorded music revenues reaching $29.6 billion in 2024, streaming surpassing $20 billion, and subscription streaming accounting for more than half of the total.
Analysts note that co-CEO models can sometimes create unclear lines of authority, but Spotify aims to use the structure to drive innovation and operational efficiency. Ek’s leadership has been praised as instrumental in transforming Spotify into a global tech and music powerhouse.
With Ek transitioning to executive chairman, Spotify enters a new phase of growth while remaining focused on competing with major rivals and maintaining its position as a leading music streaming platform worldwide.
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