A New Era for Spotify: Daniel Ek Steps Down as CEO After 20 Years at the Top

Spotify’s founder, Daniel Ek, is set to step down as CEO after an impressive two-decade tenure, marking a pivotal change for the music streaming powerhouse. The transition, announced by the company, will see Ek replaced by co-presidents Gustav Söderström and Alex Norström at the end of the year. Ek will still play a critical role as executive chairman, guiding the long-term strategy, as he aims to remain active in core decision-making processes.

Since its inception in 2006, Spotify has evolved from battling music piracy to becoming one of Europe’s most successful technology firms, boasting over 700 million monthly users globally. However, its journey hasn’t been without controversy. The company’s payment practices have drawn criticism from various musicians, leading to protests, including a boycott initiated by bands such as Massive Attack and Deerhoof. These artists argue that the platform’s revenue model creates an “economic burden”, further exacerbated by Ek’s investments in companies like Helsing, which develops AI-powered weapon systems.

In a letter to Spotify staff, Ek emphasized that the decision to step down was not linked to recent controversies, clarifying that this structural change was already in motion before the backlash. He characterized the new arrangement as a way to align titles with their operational reality, asserting that for most employees, day-to-day operations will remain unaffected. Ek expressed a commitment to focusing on the strategic future of Spotify, including capital allocation and navigating regulatory challenges, which are essential for shaping the platform’s next decade. Following this announcement, Spotify’s shares experienced an immediate downturn of over 4%.