Spotify CEO Daniel Ek To Step Down In January, As Company Adopts Co-CEO Model

Spotify founder Daniel Ek will step down as CEO in January, as the firm adopts a co-CEO model.

Spotify founder and chief executive Daniel Ek will step down from his role in January 2026 to become executive chairman, the Swedish streaming giant announced on Tuesday. The move comes as the company shifts to a new co-CEO structure aimed at strengthening its competitive edge and improving profitability.

Ek, who founded Spotify in 2006 and built it into a rare global consumer tech powerhouse from Europe, will step back from daily management but remain heavily involved in shaping strategy. Describing his transition, Ek said: “I will be more involved than a typical US chairman. Think of it as moving from a player to a coach.”

Spotify named Gustav Söderström, currently chief product and technology officer, and Alex Norström, chief business officer, as co-chief executives. Both have worked with Ek for more than 15 years and will oversee global technology, subscriber growth, advertising, music, podcast and audiobook operations.

Market analysts say the shift marks a major turning point for Spotify. “Ek leaves the CEO role on a high note, with big boots to fill for the incoming CEOs,” noted Paolo Pescatore of PP Foresight. US shares of Spotify fell about 5%, despite gaining 63% earlier this year.

The company remains the clear market leader with nearly 700 million monthly users and a catalogue exceeding 100 million tracks—well ahead of Apple Music’s estimated 90 million subscribers. However, competition is intensifying as YouTube Music leverages video integration and Amazon Music benefits from its Prime membership base.

Despite its dominance, Spotify has long struggled with thin profit margins, pressured by artist royalty demands and the expansion of its ad-supported tier. The company reported its first annual profit only in 2024, following a series of price hikes and cost-cutting initiatives.

Industry-wide, streaming continues to drive growth. Global recorded music revenues rose 4.8% to $29.6 billion in 2024, with streaming surpassing $20 billion for the first time, according to the IFPI Global Music Report.

Ek, widely regarded as one of Europe’s most influential tech entrepreneurs, has often been cited as proof that the region can produce firms capable of competing with US and Asian giants. As executive chairman, he will focus on long-term strategy and capital allocation, while Söderström and Norström steer day-to-day operations.

Still, some analysts remain sceptical of the co-CEO model. “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,” said Dan Coatsworth of AJ Bell.

For Spotify, the leadership reshuffle underscores the balancing act between innovation, profitability, and maintaining its position at the forefront of the global music streaming industry.