Spotify’s co-founder Daniel Ek to step down as CEO after nearly two decades

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Daniel Ek, who has led Spotify as Chief Executive for many years, announced on Tuesday that he will be transitioning out of the role next year. He will take on a new position as executive chairman.

Ek co-founded the Swedish audio company in 2006 and has served as CEO since the beginning.

He wanted to combat music piracy by creating a service where people could pay a fee to listen to music online.

I’m a big fan of Spotify, and it’s amazing how much it’s grown – they now have over 700 million users! It’s not just about music anymore either; I love that I can listen to podcasts and audiobooks right in the same app. I even know they have a huge office located right in downtown Los Angeles.

Starting January 1st, Gustav Söderström, currently chief product and technology officer, and Alex Norström, chief business officer, will become co-CEOs. They have both been serving as the company’s co-presidents since 2023 and will be taking on this new leadership role.

Hollywood Inc.

Spotify announced on Thursday that it has taken down 75 million tracks generated by AI that were considered spam, which also included deepfakes, over the last year.

In a LinkedIn video, Ek explained that now was a good moment for him to step down as leader. He also shared that Spotify has been making a profit for over a year, and praised his co-presidents for “doing an amazing job.” He highlighted the key contributions they’ve made to the company, including the development of audiobooks and the expansion of video podcasts.

Music

As a huge cinema devotee and someone who appreciates all forms of art, I have to say I was pretty shocked to hear about Daniel Ek’s investment in Helsing, the AI drone company. It’s really stirred things up in the artistic community, and one artist even went so far as to call Spotify a “violent armageddon portal”! It’s a strong statement, obviously, but it really shows how concerned people are about the ethical implications of AI and where this technology is heading.

According to a statement by Ek, he has transitioned much of Spotify’s daily operations and long-term planning to Alex and Gustav. He explained that these two have been instrumental in building the company since its beginning and are well-prepared to lead its future. He added that this adjustment simply formalizes how things have been working for some time now.

Under Ek’s leadership, Spotify has weathered several controversies and protests from artists.

Earlier in 2024, Daniel Ek, the head of Spotify, faced backlash from several musicians after he invested around $700 million in Helsing, a company that builds technology for defense purposes. As a result, some artists removed their songs from Spotify as a form of protest.

In 2024, Spotify distributed over $10 billion to the music industry. However, some artists have expressed concerns that the amount they personally receive from the streaming service is insufficient.

Ek announced he will continue as executive chairman, concentrating on overall strategy, how the company invests its money, and dealing with government regulations. Söderström and Norström will both report to Ek and collaborate with the board of directors.

During a call with investors on Tuesday, Söderström explained that he focuses on product and technology, while Norström is responsible for business, markets, and content.

“Alex has a strong understanding of products, and I’m passionate about the business side, so we operate as one combined team, bringing our groups together,” Söderström explained. “Essentially, this means things will continue much as they have been with how we manage the companies.”

Spotify stock was trading at $687.60, down about 6% on Tuesday morning.

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2025-09-30 19:31