Spotify's co-founder Daniel Ek to step down as CEO after nearly two decades

Spotify’s longtime Chief Executive Daniel Ek said Tuesday that helium is stepping down from his presumption adjacent twelvemonth and volition go enforcement chairman.

Ek, 42, co-founded the Swedish audio institution successful 2006 and has served arsenic CEO since the beginning.

His imaginativeness was to find a mode to combat against euphony piracy by offering a level wherever consumers could wage to watercourse music.

Spotify has grown to much than 700 cardinal users and has expanded into caller categories beyond music, including podcasts and audiobooks. Spotify has a ample bureau successful downtown Los Angeles.

“The mode helium built a concern exemplary from scratch is truly remarkable,” said Thomas Monteiro, elder expert astatine Investing.com. “It’s not conscionable the thought and it’s not conscionable the execution, it is simply a operation of some things, and I deliberation that helium did that masterfully.”

Gustav Söderström, main merchandise and exertion officer; and Alex Norström, main concern officer, who person served arsenic the company’s co-presidents since 2023, volition modulation to co-CEOs connected Jan. 1.

In a video posted connected LinkedIn, Ek said that it was the close clip to marque the enactment transition, adding that Spotify has been profitable for much than a twelvemonth and that his co-presidents person been “doing an astonishing job.” He noted the executives made cardinal contributions to the company, from audiobooks to scaling video podcasts.

“Over the past fewer years, I’ve turned implicit a ample portion of the day-to-day absorption and strategical absorption of Spotify to Alex and Gustav, who person shaped the institution from our earliest days and are present much than acceptable to usher our adjacent phase,” Ek said successful a statement. “This alteration simply matches titles to however we already operate.”

Under Ek’s leadership, Spotify has weathered respective controversies and protests from artists.

Earlier this year, Ek was criticized by immoderate musicians for starring a backing circular of astir $700 cardinal to defence institution Helsing. Some artists pulled their euphony from Spotify successful protest.

While Spotify paid much than $10 cardinal successful 2024 to the euphony industry, immoderate artists person complained that they don’t cod capable wealth from the streaming platform.

Another root of friction has progressive AI and copyright infringement. In the past 12 months, Spotify said it has removed much than 75 cardinal AI-generated “spammy” euphony tracks and is stepping up its crackdown connected unauthorized AI-generated usage of artists’ voices.

Ek said helium volition go enforcement president and absorption connected strategy, superior allocation and regulatory efforts. Söderström and Norström volition study to Ek and enactment with the committee of directors.

Söderström said successful a telephone connected Tuesday with investors that his halfway responsibilities are merchandise and technology, portion Norström oversees business, markets and content.

“Alex is profoundly funny and knowledgeable astir merchandise and I’m precise funny successful business, truthful we tally this arsenic a azygous team, our associated teams together,” Söderström said. “So successful practice, not that overmuch volition alteration from however we tally the companies.”

Spotify posted a nett nonaccomplishment of 86 cardinal Euros successful the 2nd 4th of this year, compared to nett income of 274 cardinal Euros a twelvemonth earlier, citing unit costs, nonrecreational services, payroll taxes and selling costs.

Spotify banal closed astatine $698, down astir 4% connected Tuesday.