Spotify founder and CEO Daniel Ek will step down in January to take on the role of executive chairman, the Swedish streaming giant announced on Tuesday. Longtime executives Gustav Soderstrom and Alex Norstrom will assume joint leadership as co-CEOs.
The transition comes as Spotify continues its push into podcasts and audiobooks, raising questions about how it will balance aggressive growth with profitability. Shares fell 2.5% in premarket trading following the announcement, though they remain up 63% for the year.
As executive chairman, Ek said he will focus on long-term strategy and capital allocation, describing the role as a “European-style chairman position.” He emphasized he will remain closely involved: “I will be more involved than a typical US chairman. So think of it a little bit like moving from a player to a coach.”
Ek, one of Europe’s most prominent tech entrepreneurs, has led Spotify since co-founding it in 2006, growing the company into the world’s largest music streaming service with nearly 700 million monthly users and more than 100 million tracks. Spotify remains well ahead of rivals like Apple Music, with about 90 million subscribers, but faces growing competition from YouTube Music and Amazon Music.
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Despite its market dominance, Spotify has struggled with thin margins as artists demand higher payouts and its ad-supported tier grows. The company reported its first annual profit only in 2024 after price hikes and cost-cutting measures.
“Naturally, there will be some disruption given the change and the significant achievements under Ek’s stewardship, which have been remarkable,” said Paolo Pescatore, analyst at PP Foresight.
Soderstrom, Spotify’s chief product and technology officer, and Norstrom, its chief business officer, have worked with Ek for over 15 years. Together they will oversee global tech strategy, product development, and the company’s music, podcast, audiobook, and advertising businesses.
Several major firms, including Oracle and Netflix, have adopted co-CEO structures to manage increasingly complex, global operations. Spotify’s leadership hopes the model will allow it to sustain its growth as the global music industry—now worth $29.6 billion annually, with streaming exceeding $20 billion for the first time—becomes ever more competitive.