This morning (September 30), Spotify revealed that its founder and Chief Govt Officer, Daniel Ek, is stepping again from the CEO position and can transition to Govt Chairman.
The corporate has named Gustav Söderström (co-President and Chief Product and Know-how Officer) and Alex Norström (co-President and Chief Enterprise Officer) as its new co-Chief Govt Officers.
In accordance with the announcement, Spotify’s new Co-CEOs will report back to Daniel Ek and also will serve on the corporate’s Board of Administrators, topic to shareholder approval.
These adjustments will all be efficient January 1, 2026.
In a memo despatched to staff at present, which you’ll be able to learn in full right here, Ek confirmed that “with full confidence in Gustav and Alex, on January 1, 2026, I’ll transfer to Govt Chairman”.
He additionally mentioned that “Alex and Gustav have clearly demonstrated that, with the help of this outstanding workforce, they’re preparedtoleadSpotify as co-CEOs.”
The three execs, Ek, Söderström, and Norström, participated in a Q&A with analysts on Tuesday to elucidate the strategic pondering behind the management transition.
MBW listened in on the decision. Right here’s what stood out…
1. Why Now? Daniel Ek says that Söderström and Norström “are actually delivering exceptionally properly already.”
When requested why now was the correct time for the management change, Ek defined that the choice was pushed by the sturdy efficiency of Söderström and Norström slightly than any exterior pressures.
“It’s much less a operate of actually something besides the truth that Alex and Gustav are actually delivering exceptionally properly already,” Ek mentioned. “And I really feel like it is a pure evolution of what we already do as a management workforce.”
Ek famous that since taking on as co-Presidents in 2023, the 2 executives “have actually stepped up in a fabric manner, taking a lot of the day-to-day duties”.
“As they’ve been rising, I’ve been handing them increasingly more of the duties,” he added. “I really feel like that is really extra of a pure reflection of how the corporate really works and operates already.”
“This can be a pure evolution of what we already do as a management workforce.”
Ek described his personal position evolution as transferring “from being extra of a participant to extra of a coach sort mannequin”, including that he “will work with Gustav and Alex on the massive strategic choices that we face within the lengthy arc of the corporate”.
Earlier than becoming a member of the Firm in 2009, Söderström was director of product and enterprise growth for Yahoo! Cell from 2006 to 2009.
In 2003, based Kenet Works, an organization that developed group software program for cellphones and served as the corporate’s Chief Govt Officer till it was acquired by Yahoo! in 2006. Söderström is a startup seed investor and founding father of thirteenth Lab (acquired by Fb’s Oculus).
Norström, in the meantime, was Chief New Enterprise Officer at King.com Ltd previous to becoming a member of Spotify in 2011. He was a member of the board of administrators of Circle from 2016 by means of December 2019.
He was beforehand Spotify’s Chief Freemium Enterprise Officer and, previous to that, the corporate’s Chief Premium Enterprise Officer, Vice President of Development, and Vice President of Subscriptions.
2. Ek says he shall be “extra concerned than a typical US chairman” and can retain an workplace with the co-CEOs
Addressing questions on what his Govt Chairman position would entail, Ek clarified that it will be extra lively than what buyers would possibly count on from a typical US-style chairman.
“I feel most buyers could come at it from a US perspective, the place it’s principally a ceremonial position,” Ek mentioned. “In Europe, it isn’t. In actual fact, a md is somebody who’s fairly lively within the enterprise; typically even represents the enterprise to totally different stakeholders, like, as an illustration, governments or key companions.”
“We wished to make it clear that this position is extra consistent with the European one than American one,” he defined.
Ek emphasised that the “govt” a part of the title was important: “I’m nonetheless retaining an workplace right here with Gustav and Alex, engaged on numerous varieties of issues with them.”
Nonetheless, he was clear concerning the energy construction: “I do need to make it clear, that is actually they’re in cost. They’re those making the choice, however I shall be there as a pal, a coach, a cheerleader, no matter I’m wanted to do for the day in making this occur.”
3. Ek says Spotify is “early on this journey” and pointed to huge geographical alternatives forward
Trying towards the corporate’s long-term technique, Ek remained bullish on Spotify’s future development potential.
“I nonetheless consider, with each fiber of my being, that we’re early on this journey,” Ek mentioned. “And once you type of look out and also you type of see what’s nonetheless left on the desk for Spotify, there’s some superb alternatives.”
“I nonetheless consider, with each fiber of my being, that we’re early on this journey.”
He highlighted a number of key development areas: “There’s the following technology of customers that are actually coming on-line in a really massive manner. We’ve got an enormous a part of the world that also isn’t actually accustomed to streaming as a lot as we take it with no consideration at present, with all the pieces from Asia to Africa, [which have] extremely populous areas and really younger demographics.”
Ek additionally pointed to technological development as a driver: “We’ve got new expertise developments, new type components, AI, all of those different issues.”
He invoked a Invoice Gates quote to border his pondering: “Folks are likely to overestimate the brief time period and underestimate the long run, and that’s actually one of many issues that Alex, Gustav and I speak so much about.”
“I’m gonna maintain pushing for us to go searching the nook, keep centered on the long run, and maintain displaying up each day and make gradual enhancements, as a result of that’s long run what results in the most effective outcomes,” Ek added.
4. On Spotify’s success up to now, Ek mentioned: “In a single day success doesn’t occur in a single day”
When requested about key initiatives to drive long-term development, Ek mirrored on the corporate’s two-decade journey.
“As I mirror again on twenty years of Spotify, there’s just a few phrasings that come to thoughts,” Ek mentioned.
“One in all them is that in a single day success doesn’t occur in a single day. It’s really simply type of waking up, going to work, work actually arduous, and making gradual enhancements over 20 years. That’s the outcomes of the corporate that we’re sitting right here at present with.”
He emphasised that this method would proceed: “Yeah, I’m gonna maintain pushing for us to go searching the nook, keep centered on the long run, and maintain displaying up each day and make gradual enhancements, as a result of that’s long run what results in the most effective outcomes and that I do know is the product of what Spotify is at present.”
5. Ek says he’ll deliver an “outdoors in perspective” from his work with different corporations
Discussing how he could be most useful in his new position, Ek pointed to the worth of exterior views.
“One of many type of future-looking elements can be the outside-in perspective,” Ek mentioned. “One of many superb issues that I really feel now having been concerned with corporations like Neko Well being, is that you simply do get a distinct perspective about totally different working environments, totally different cultures.”
He acknowledged each the strengths and potential limitations of Spotify’s long-tenured workforce: “We’ve got a workforce of extraordinarily tenured [employees]. Lots of people have been right here for 10, 15 years and actually grown up with the corporate.
“I feel that’s 99% a superpower that now we have right here as an organization. And Spotify wouldn’t have been what it’s at present if it weren’t for all of the ‘Spotifiers’ previous and current that helped construct the corporate into what it’s at present.”
“However with all that mentioned,” he continued, “one of many actual issues as properly is it is very important be capable to draw on inspiration from the skin.”
Ek defined that one in every of his “new superpowers is that I do get to sit down on the within on a number of the different companies as properly that I’m serving to construct, and seeing what it actually is like to start out a brand new startup, as an illustration, in 2025 and what are a number of the instruments and choices you can also make, and the way can that impression Spotify in a optimistic manner”.
He added: “We’ve already seen a few of these classes, and are making use of them now at Spotify.”
6. Alex Norström says Spotify has “by no means been extra excited than we’re proper now” and pointed to the corporate serving simply 3% of the world’s inhabitants
When requested what they have been most enthusiastic about within the subsequent chapter, Norström emphasised the corporate’s momentum and untapped potential.
“We will’t be extra excited than we’re proper now,” Norström mentioned. “It’s simply with a lot momentum. We’ve been transport at an more and more larger tempo.”
He cited latest achievements: “You noticed us type of see the completion of renewals occur this 12 months. We rolled out audiobooks to extra markets. We simply improved the free tier, which goes properly. We shipped messaging, we shipped mixing instruments, lossless, DJ, and on it goes, and we’ll proceed to ship much more issues.”
Norström put Spotify’s present scale in perspective: “We’re fortunate that we began with music, as a result of planet Earth has some relationship with music. And at present, at Spotify, we see 3% of the world’s inhabitants paying us on a recurring foundation for product that they’re loving.”
In accordance with Spotify’s Q2 2025 earnings report, the platform noticed its international Premium Subscriber base develop to 276 million paying customers in the three months ended June 30, up by +8 million web subs versus the prior quarter (Q1 2025).
Spotify’s whole Month-to-month Lively Customers, which mix paying customers and ad-supported customers, grew 11% 12 months over 12 months to 696 million.
Trying forward, he mentioned: “It’s not unimaginable that we’ll be at 10%, 15% [of the world’s population paying for Spotify].”
7. Gustav Söderström says AI represents “essentially the most thrilling time” for product growth “in most likely 15 to twenty years”
Requested about his priorities and what excited him most, Söderström centered on synthetic intelligence and technological transformation.
“We’re in the midst of a macro wind referred to as AI. There are higher suggestions, extra personalization, however we additionally assume it’s going to ultimately find yourself in new type components,” Söderström mentioned.
He added: “My high precedence, my one, two and three, is to guarantee that we seize this chance [of AI] and make it a tailwind [that] accelerates us.”
Söderström additionally drew parallels to Spotify’s earlier main platform shift: “I’m a product man and a technologist. I’ve been right here lengthy sufficient that I went by means of the earlier massive macro change, which was shifting [to] cell, and that was actually scary.
“All macro shifts are scary, however as a product particular person and technologist, [it] was essentially the most thrilling time I’ve ever had, till AI, as a result of now all the pieces is about to vary once more.”
“Again within the shift to cell, we managed to place the corporate to truly [use] that macro wind as a tailwind as a substitute of a headwind. And that is what we need to do now as properly,” he defined.
Söderström concluded: “I feel should you ask anybody in product, that is essentially the most thrilling time in most likely 15 to twenty years, and you then need to be at an organization that has huge impression. In order that’s why I’m excited.”
