Spotify’s next chapter: Daniel Ek steps down as CEO

Last week, Spotify’s Daniel Ek,  formally announced as of 1 January 2026, he will step down as CEO and transition to the role of executive chairman.

This will see Ek step away from daily operations and hand over to Gustav Söderström and Alex Norström, who will take over as co-CEOs.

The move marks an end of a defining era for Spotify, one that has profoundly reshaped the global music.

From industry collapse to streaming dominance

2006 – Music revenues decline 
Rewinding almost two decades to 2006, the global music industry was what could be described as a free for all, with revenues having dropped from $39bn in 1999 to $15.9bn in 2011.

Revenues had been declining year after year, driven by digital piracy.

Traditional CD sales were collapsing and legal digital alternatives were not user friendly or widely accessible.

And despite iTunes offering some options, the per-track model didn’t resonate with the listening behaviours of the generation.

2008 – Spotify says Hej! 
In 2008, Ek launched Spotify in Sweden, bringing in a radical ad-supported, on-demand streaming model which challenged both piracy and paid, but unattractive, alternatives.

2011 – US launch
Three years later in 2011, the platform launched in the US, marking a pivotal moment of Spotify becoming a global market disruptor.

2015 – Discover Weekly 
Come 2015, the Discover Weekly featured was launched, which utilised algorithms to deliver personalised playlists, revolutionising music discover and engagement.

2018 – IPO 
In 2018, Ek took the company public through a direct listing on the New York Stock Exchange.

2019-21 – The podcast era
Between the years of 2019 – 2021, Ek began bringing in podcasts. He acquired Anchor, which provides tools for creating, hosting, distributing and monetising podcasts.

The Spotify CEO also acquired Gimlet Media, a podcast production company and The Ringer, a sports and pop culture website and podcast network.

2022-2025 – Programmatic and Sax 
From 2022 – 2025, the platform has grown in its offering of programmatic audio and contextual targeting, launching its Spotify Ad Exchange, or Sax, in April.

Primarily due to Spotify’s influence, the music industry has had a revolution, with the global music market expected to reach $31.4bn in 2025.

Stepping down on a high note

Ek is leaving the CEO role at a time of strength for Spotify.

The share price is up more than 50% in 2025 so far, and market value is $145bn, with Ek owning around 14% of the share capital.

Spotify serves nearly 700m users globally, including 276m paying subscribers across 184 markets, and in 2024 its revenue topped $15.6m, with $1.17bn in profits.

With Spotify’s new CEO’s having been in the senior roles of chief product and technology officer for Söderström and chief business officer for Norström, and both having served as co-presidents since 2023, Spotify’s trajectory of success is expected to continue.

However, there are still challenges that remain.

A balancing act

Media analyst, Alex DeGroote, highlights how Spotify’s journey to long-term profitability is still under scrutiny, especially due to royalty fees paid to rights holders, with the company having paid $10bn in royalties in 2024.

Its ads business also reported a stangation at the end of Q2 2025, reporting a 1% decline to  €453m, showcasing the need to do things differently.

Perhaps in an effort to do this the company is also making big steps to expand its programmatic presence, last week they announced Spotify inventory will now be available on Amazon’s DSP.

DeGroote pointed out how Amazon Music and Spotify are direct competitors for subscribers and ad revenue, despite now partnering in different divisions.

He noted: “These partnerships will require skillful management.”

Spotify follows suit by adding inventory to Amazon DSP