Daniel Ek Steps Back as Spotify CEO
Spotify founder and CEO Daniel Ek will step down from his day-to-day leadership role in January, transitioning to executive chairman as the streaming giant adopts a co-CEO structure. Ek, who built Spotify into a global music leader, will now focus on long-term strategy and capital allocation, guiding the company from a European-style executive chair perspective.
“I will be more involved than a typical U.S. chairman—think of it like moving from a player to a coach,” Ek said. The company highlighted that he will remain deeply engaged while co-CEOs take on daily operations.
Co-CEOs Take the Helm
Spotify has named Chief Product & Technology Officer Gustav Soderstrom and Chief Business Officer Horacio Norstrom as co-CEOs. Soderstrom will oversee global technology strategy and product development, while Norstrom will manage subscriber services, advertising, music, podcast, and audiobook operations.
Both will report to Ek and have collaborated with him for over 15 years, ensuring continuity in leadership. “Norstrom focuses on business, I focus on product, and together we run a single team,” Soderstrom said.
Market Leadership Amid Rising Competition
Spotify remains the industry leader with nearly 700 million monthly users and a catalog of over 100 million tracks, far ahead of Apple Music’s roughly 90 million subscribers. Yet rivals such as YouTube Music and Amazon Music present challenges with video integration and Prime-linked offerings, putting pressure on Spotify to innovate and maintain its edge.
Profit Pressures and Revenue Growth
Even with dominance in streaming, Spotify faces profit-margin pressures due to rising artist payouts and the growth of its ad-supported tier. Global recorded music revenue rose 4.8% to $29.6 billion in 2024, with streaming exceeding $20 billion for the first time, according to IFPI. Subscription streaming now accounts for over half of the total revenue.
Spotify reported its first annual profit in 2024 after raising prices and cutting costs, a major milestone since its founding in 2006.
Co-CEO Model and Industry Trends
The co-CEO structure, increasingly adopted by companies like Netflix and Oracle, allows for better management of complex, global operations. However, some analysts question whether having an executive chairman alongside two CEOs may blur lines of authority.
“The big unknown is why Spotify needs an executive chairman and two chief executives—it conjures the idea that too many cooks spoil the broth,” said Dan Coatsworth, an investment analyst at AJ Bell.
From Startup to Streaming Giant
Founded in Stockholm in 2006, Spotify revolutionized the music industry, offering an alternative to piracy and declining CD sales. Ek is widely recognized for demonstrating that European companies can compete on a global tech stage.
Spotify enters a new chapter with co-CEOs Soderstrom and Norstrom guiding operations while Ek focuses on strategy, ensuring the company adapts and innovates in an increasingly competitive streaming market.
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