Daniel Ek, the founder and CEO who built Spotify into a global streaming leader, will step down from his executive position in January to become the company’s Executive Chairman. The move is part of a major structural overhaul that introduces a co-CEO model as Spotify intensifies its efforts to fend off competitors and shore up its profit margins.
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Ek, a prominent figure in European tech, will retreat from day-to-day operations to focus on capital allocation and long-term strategy. He described the new role as a “European-style” position, stating, “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.”
Spotify’s new joint leadership will be split between two long-time company executives who have worked with Ek for over a decade:
- Gustav Soderstrom (currently Chief Product and Technology Officer) will oversee global tech strategy and product development.
- Alex Norstrom (currently Chief Business Officer) will manage subscriber and advertising businesses, along with music, podcast, and audiobook operations.
Both will report directly to Ek, who will remain on the board. The co-CEOs expressed confidence in their shared vision, with Soderstrom noting, “Norstrom is deeply interested in knowledge about product, and I’m very interested in business. So we run this as a single team.”
The company is adopting this co-CEO structure—a model also used by firms like Oracle and Netflix—to better manage increasingly complex and globally diversified operations. However, the decision has drawn scepticism. As AJ Bell investment analyst Dan Coatsworth put it, “The big unknown is why Spotify needs an executive chairman and two chief executives as that conjures up the idea that too many cooks spoil the broth.”
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Ek leaves the CEO role at a pivotal moment. Spotify remains the clear market leader with nearly 700 million monthly users and over 100 million tracks, significantly ahead of rivals like Apple Music (∼90 million subscribers).
Despite its dominance, the company faces persistent pressure on profit margins due to artists pushing for higher payouts and the expansion of its ad-supported tier. While global recorded music revenue exceeded $20 billion from streaming in 2024, Spotify only reported its first annual profit in 2024 following a slew of price increases and cost-cutting measures.
The new structure aims to help Spotify maintain its edge against competitors like YouTube Music (with its vast video catalogue) and Amazon Music (integrated with Prime). Following the announcement, Spotify’s U.S. shares, which had gained 63% this year, fell by about 5%.
