Stockholm, Sweden – September 30, 2025 – In a significant leadership evolution for the global audio streaming giant, Spotify announced today that its founder and long-time CEO, Daniel Ek, will step down from his operational role as CEO, transitioning to Executive Chairman effective January 1, 2026. Stepping into the helm as co-Chief Executive Officers will be Gustav Söderström, currently co-President and Chief Product and Technology Officer, and Alex Norström, co-President and Chief Business Officer.
This strategic shift aims to solidify Spotify’s market leadership and drive future growth while fending off increasing competition and shoring up profit margins. The move formalizes a leadership structure that has been in practice since 2023, with Söderström and Norström largely steering strategic development and operational execution.
A New Chapter for Spotify’s Leadership
Daniel Ek, who co-founded Spotify nearly two decades ago and has steered it to become a household name and a prominent global consumer technology leader, will move to a role focused on long-term strategy and capital allocation. “I’ve spent twenty years, nearly my entire adult life, as Spotify’s CEO,” Ek, 42, stated in a memo to employees. “I’m ready to go from a player to a coach.” His new role as Executive Chairman will be more hands-on than a traditional US chairman, reflecting a “European chairman setup” where he will guide the company’s long-term vision and maintain deep connection with the board and the new co-CEOs. Ek emphasized that this transition is not a departure but a redefinition of his commitment, allowing him to “focus on the long arc of the company.”
The Rationale Behind the Transition
Ek explained that the timing for this leadership change is driven by the exceptional performance and readiness of Söderström and Norström, rather than any external pressures. “Alex and Gustav have clearly demonstrated that, with the support of this remarkable team, they are ready to lead Spotify as co-CEOs,” Ek noted. He added that over the past few years, he has gradually handed over significant day-to-day management and strategic direction to the pair, who “have shaped the company from our earliest days and are now more than ready to guide our next phase.” This change, he stated, “simply matches titles to how we already operate.”
The Spotify Board of Directors has been working closely with Daniel Ek on this leadership evolution for several years. Woody Marshall, Lead Independent Director of Spotify’s Board, expressed confidence in the new structure, stating, “We have tremendous confidence in Alex and Gustav as they step into these roles. They each have more than 15 years with the company and have been instrumental in driving our success and enabling Spotify to lead our industry.”
Söderström and Norström: A Proven Partnership
Gustav Söderström brings extensive experience in product and technology strategy, having joined Spotify in 2009 and previously holding roles including Chief Technology Officer. His leadership has been pivotal in driving innovation, user experience, and the platform’s technological advancements, including its significant expansion into podcasts. Alex Norström, who also joined Spotify in 2011, oversees the subscriber and advertising businesses, as well as content across music, podcasts, and audiobooks. His previous roles include Chief Business Officer and Vice President of Growth, contributing significantly to Spotify’s commercial success and market expansion. Both co-presidents have been instrumental in shaping Spotify’s business operations and product development for over 15 years, making them well-equipped to lead the popular music streaming service into its next era.
Spotify’s Market Dominance and Financial Milestones
Spotify continues to hold a commanding position in the audio streaming market. As of the second quarter of 2025, the company boasts nearly 700 million monthly active users (MAUs), with 276 million of those being paying subscribers. The platform offers an expansive library of over 100 million tracks.
Financially, Spotify achieved a significant milestone by reporting its first full year of profitability in 2024, a notable turnaround from previous years. This success was attributed to strategic price increases, rigorous cost-cutting measures, and continued subscriber growth. For 2024, revenue grew by 16% year-on-year to €4.2 billion, and the company posted a net profit of €1.14 billion. This financial strength provides a solid foundation for future investments and strategic initiatives.
Navigating a Competitive Landscape
Despite its market leadership and recent profitability news, Spotify operates in a fiercely competitive environment. Rivals such as YouTube Music, which leverages a vast video-integrated catalog, and Amazon Music, which benefits from its Prime membership ecosystem, present ongoing challenges. Apple Music also remains a significant player with roughly 90 million subscribers. The company faces continued pressure on profit margins, driven partly by demands for higher artist payouts and the expanding ad-supported tier.
Looking ahead, Ek has indicated a focus on future growth opportunities, including vast untapped markets in Asia and Africa, and emerging technologies like artificial intelligence. The co-CEO structure is seen as a strategic move to navigate these complexities, drive innovation, and sustain Spotify’s position as a premier global audio platform. The business entrepreneur’s vision for continued growth and user engagement is now in the hands of Söderström and Norström, supported by Ek’s strategic oversight.
This leadership transition marks a new and exciting chapter for Spotify, signaling a continued commitment to innovation, profitability, and global expansion in the dynamic world of music and audio entertainment. The business is poised to continue its impressive trajectory under its new leadership.
