Spotify’s co-founder Daniel Ek is stepping aside as chief executive after nearly two decades leading the music streaming giant he launched in Sweden in 2006.
The 42-year-old, who has become one of Europe’s most prominent tech entrepreneurs, will remain at the company as executive chairman, focusing on long-term strategy. Day-to-day leadership will pass to his long-time deputies, Gustav Söderström and Alex Norström, who will take over as co-chief executives at the end of the year.
Formalising a Shift Already Under Way
Spotify said the change largely reflects the way the business has been run since 2023, when Ek handed over much of the daily management. Both Söderström, currently chief product and technology officer, and Norström, the firm’s chief business officer, have been with the company for more than 15 years.
In a message to staff, Ek insisted he would still be closely involved in major decisions: “For most of you, very little will change. What changes is my time and focus. As executive chairman, I will spend more time on strategy, capital allocation, regulation and the calls that will shape the next decade for Spotify.”
Shares in the company dropped more than 4% in early trading after the announcement.
From Fighting Piracy to 700m Users
Spotify was founded to provide an alternative to rampant music piracy, using advertising and paid subscriptions to fund royalties for rights holders. Since then, it has grown into the world’s dominant streaming service with more than 700 million monthly users, expanding beyond music into podcasts and audiobooks.
The company’s rise turned Ek into a billionaire, with an estimated fortune of around $10bn. But Spotify has long been criticised by musicians over royalty payments, with artists including Massive Attack and Deerhoof boycotting the platform earlier this year.
A Controversial Side Venture
Ek has also faced scrutiny over his personal investments. He is executive chairman of Helsing, a German defence start-up developing AI-driven weapons systems. Critics argue that fan subscriptions are indirectly funding military technology. Massive Attack said Spotify had placed an “economic burden” on artists that was “now compounded by a moral and ethical burden”.
Spotify stressed Ek’s decision to step down was unrelated to the controversy and had been in the works for some time.
A European-Style Model
Under the new structure, Söderström and Norström will continue reporting to Ek. The company described the setup as a more “European approach” than the US norm, with an executive chairman expected to stay more hands-on.
Ek, who once steered Spotify from a small Stockholm start-up to a global cultural force, now says his role will be to keep pushing the company’s direction while leaving daily operations to his successors.
