Spotify announced a major leadership transition as founder and CEO Daniel Ek will step down from the top role in January 2026 to become Executive Chairman.
Longtime executives Gustav Soderstrom, Chief Product and Technology Officer, and Alex Norstrom, Chief Business Officer, have been appointed as co-Chief Executive Officers, reporting to Daniel Ek and joining the company’s Board of Directors.
The move comes as Spotify expands its footprint in podcasts, audiobooks, and new content formats, while navigating investor concerns about balancing growth and profitability. Shares of Spotify slipped about 3 percent following the news, Reuters reports. The stock has climbed more than seven-fold since 2023 on the back of strong streaming demand and sustained profitability.
Daniel Ek emphasized that the change reflects how Spotify has operated since 2023, with the co-presidents leading much of the strategic and operational execution. “This change simply matches titles to how we already operate,” Daniel Ek said. His new role as Executive Chairman will focus on long-term strategy, capital allocation, and mentoring leadership.
Spotify remains the global leader in audio streaming with nearly 700 million monthly active users, including 276 million paying subscribers, and a catalog of more than 100 million tracks, 7 million podcasts, and 350,000 audiobooks.
Despite its dominance, the company faces rising competition from Apple Music, YouTube Music, and Amazon Music, as well as persistent pressure on profit margins from artist payouts and its ad-supported tier.
Founded in 2006, Stockholm-based Spotify reshaped the global music industry after years of decline caused by piracy and shrinking CD sales. The company reached its first full-year profit only in 2024, following a combination of price increases and cost efficiencies. Analysts say Daniel Ek’s transition underscores his vision of maintaining founder-led stewardship while empowering experienced leaders to drive Spotify’s next phase of growth.
Industry experts note that the co-CEO model, adopted by firms like Oracle and Netflix, reflects the complexity of managing global technology businesses at scale. Both Soderstrom and Norstrom bring more than 15 years of experience at Spotify and have worked closely with Daniel Ek for over a decade.
The leadership changes will take effect on January 1, 2026, with Spotify hosting a live Q&A session for investors to discuss the transition.
Shafana Fazal
