Why Spotify CEO Daniel Ek Is Stepping Down After Nearly Two Decades
3 minute readPublished: Tuesday, September 30, 2025 at 11:35 am
Spotify CEO Daniel Ek to Step Down, Transitioning to Executive Chairman
Daniel Ek, the co-founder and current CEO of Spotify, is set to transition to the role of executive chairman on January 1, 2026. After nearly two decades at the helm, Ek will hand over the CEO responsibilities to co-presidents Alex Norstrm and Gustav Sderstrm, who will become co-CEOs.
Ek, 42, stated he is ready to shift from a "player to a coach" and will focus on long-term strategy and key investments in his new role. He emphasized that Norstrm and Sderstrm are well-prepared to lead the company. Norstrm has experience in business, marketing, and content, while Sderstrm, a trained engineer, has focused on technology and product development.
Spotify has experienced significant growth under Ek's leadership. The company's market capitalization exceeds $150 billion, with shares trading near their all-time peak. Spotify currently offers approximately 100 million songs to nearly 700 million active users, including 276 million paying subscribers. In 2024, Spotify generated over $18.36 billion in revenue, paying out $10 billion to musicians and rights holders.
The incoming co-CEOs plan to expand Spotify's user base and revenue, particularly in emerging markets across Africa and Asia. Sderstrm is also exploring the potential of AI in shaping how people consume music.
Ek's move comes as he expands his focus beyond the music industry. He has invested in various ventures, including Prima Materia, an investment holding company. His investments include Neko, a health screening start-up, and Helsing, a defense technology company.
BNN's Perspective:
This transition marks a significant shift for Spotify, but the company appears well-positioned for continued success. Ek's move to executive chairman allows him to leverage his strategic vision while empowering a new generation of leadership to drive day-to-day operations. The focus on emerging markets and AI innovation suggests a forward-thinking approach that could solidify Spotify's position in the evolving audio landscape.
Keywords: Spotify, Daniel Ek, CEO, Executive Chairman, Alex Norstrm, Gustav Sderstrm, Music Streaming, Revenue, AI, Investments, Prima Materia, Helsing, Audio, Podcasts.