Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Spotify chief executive Daniel Ek is stepping down from the role after 19 years and becoming executive chair, in a shake-up at the music streaming pioneer that will split his position between two top lieutenants.
The company said on Tuesday that Alex Norström and Gustav Söderström would take over as co-chief executives at the start of next year.
Ek, who co-founded Spotify in 2006, said on Tuesday that he had already “turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav”, adding that their promotion “simply matches titles to how we already operate”.
Spotify shares were down more than 5 per cent just after midday in New York, though they have gained more than 50 per cent this year.
Ek, 42, started Spotify in Sweden in his early twenties at a time when the music business was still struggling to find its footing after being hit hard by online piracy. His start-up went on to revolutionise the industry and help revive it after the Napster era.
In the past few years, as Spotify slashed costs and reported its first annual profit, Ek has shifted focus to new ventures via his investment firm Prima Materia. Through that vehicle Ek in June led a €600mn investment in Helsing, a German defence group, prompting a backlash from some artists and users.
In an internal note to staff, Ek said he would now “focus on the long arc” of Spotify while remaining “deeply involved” — particularly on “strategy, capital allocation, regulatory efforts and the calls that will shape the next decade”.
He described his new role as a more “hands-on” European-style chair, in contrast to a “traditional” US model.
“In the US it’s largely a ceremonial role, in Europe it isn’t,” Ek said on a call with analysts. “A chairman is quite active in the business. I am still retaining an office here with Gustav and Alex.” Ek held more than 14 per cent ownership of Spotify shares at the end of 2024.
Norström and Söderström became co-presidents three years ago — with Norström managing subscriptions, advertising and content while Söderström was in charge of technology and engineering. Both executives have spent more than a decade with Spotify.
