Spotify has announced a significant leadership change set to take effect in January 2026. Daniel Ek, the company’s founder and long-serving chief executive, will step aside from his current role to become executive chairman. The move is part of a broader restructuring that introduces a new co-CEO model designed to strengthen Spotify’s competitive position and improve profitability in the face of growing industry challenges.
Ek, who founded Spotify in 2006, has been the driving force behind its transformation from a small Swedish start-up into a global leader in music streaming, with nearly 700 million monthly users and a catalogue of over 100 million tracks. Under his leadership, the company disrupted the music industry, reshaped how consumers access music, and set the standard for streaming services worldwide.
Although Ek will step back from daily management, he emphasized that his new role will keep him deeply involved in the company’s strategic direction. “I will be more involved than a typical US chairman. Think of it as moving from a player to a coach,” he explained, signaling his continued influence over Spotify’s long-term vision, product innovation, and capital allocation decisions.
Spotify confirmed that Gustav Söderström, the current chief product and technology officer, and Alex Norström, the chief business officer, will assume the role of co-chief executives. Both executives have worked alongside Ek for more than 15 years and are seen as integral to Spotify’s past and future success. Söderström will oversee product development and technology, while Norström will focus on business growth, advertising, music, podcasts, and audiobooks. Together, they will manage day-to-day operations while reporting to Ek in his new capacity.
The announcement has been met with mixed reactions from market analysts. Paolo Pescatore of PP Foresight described the transition as a pivotal moment, noting: “Ek leaves the CEO role on a high note, with big boots to fill for the incoming CEOs.” Despite this, investor response was cautious, with Spotify’s US shares falling about 5% following the announcement, even though the stock had already gained 63% earlier in the year.
Spotify’s market dominance remains clear, far ahead of Apple Music’s estimated 90 million subscribers. However, competitive pressures are mounting. YouTube Music is leveraging its integration with video platforms to attract younger audiences, while Amazon Music continues to expand its reach through its Prime membership bundle. Analysts warn that Spotify’s leadership team must navigate these challenges carefully to retain its lead in the streaming sector.
Financially, Spotify has faced persistent struggles with profitability due to high royalty payments to artists and record labels, as well as heavy investments in expanding its ad-supported tier. It was only in 2024, after a series of cost-cutting measures and multiple price increases, that the company reported its first annual profit. This achievement marked an important milestone, but sustaining profitability while balancing consumer affordability remains a delicate challenge.
The broader music industry continues to expand, driven largely by streaming. According to the IFPI Global Music Report, global recorded music revenues rose by 4.8% to $29.6 billion in 2024, with streaming surpassing $20 billion for the first time. Spotify, as the largest streaming service, is positioned to benefit from this trend, but it must continue to innovate to fend off rivals and meet evolving consumer expectations.
Ek’s legacy extends beyond Spotify itself. He is widely regarded as one of Europe’s most influential tech entrepreneurs, demonstrating that the continent can produce world-class consumer technology companies capable of competing with US and Asian giants. As executive chairman, Ek will focus on guiding Spotify’s long-term strategy, exploring new business models, and securing the company’s place at the forefront of digital entertainment.
Still, not everyone is convinced the new leadership structure is the right approach. Some analysts are wary of the co-CEO model, questioning whether it could create confusion or slow decision-making. Dan Coatsworth of AJ Bell expressed skepticism, saying: “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.”
For Spotify, the leadership shake-up represents more than just a change in titles. It underscores the balancing act between driving innovation, ensuring sustainable profitability, and maintaining its role as the world’s leading music streaming service. With Ek stepping back from the CEO role but remaining deeply engaged, Spotify is entering a new era—one that will test whether its leadership team can uphold its dominant position in an increasingly competitive digital landscape.
