This morning (September 30), Spotify revealed that its founder and Chief Govt Officer, Daniel Ek, is stepping again from the CEO function 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 response to 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 modifications will all be efficient January 1, 2026.
In a memo despatched to staff right now, which you’ll 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 stated that “Alex and Gustav have clearly demonstrated that, with the assist of this exceptional group, 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 nicely already.”
When requested why now was the proper time for the management change, Ek defined that the choice was pushed by the robust efficiency of Söderström and Norström relatively than any exterior pressures.
“It’s much less a operate of actually something besides the truth that Alex and Gustav are actually delivering exceptionally nicely already,” Ek stated. “And I really feel like it is a pure evolution of what we already do as a management group.”
Ek famous that since taking up as co-Presidents in 2023, the 2 executives “have actually stepped up in a fabric approach, taking a lot of the day-to-day tasks”.
“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 group.”
Ek described his personal function evolution as transferring “from being extra of a participant to extra of a coach kind 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! Cellular from 2006 to 2009.
In 2003, based Kenet Works, an organization that developed neighborhood 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 via 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 will likely be “extra concerned than a typical US chairman” and can retain an workplace with the co-CEOs
Addressing questions on what his Govt Chairman function would entail, Ek clarified that it will be extra lively than what traders would possibly count on from a typical US-style chairman.
“I believe most traders could come at it from a US perspective, the place it’s largely a ceremonial function,” Ek stated. “In Europe, it isn’t. In actual fact, a md is somebody who’s fairly lively within the enterprise; generally even represents the enterprise to totally different stakeholders, like, as an example, governments or key companions.”
“We needed to make it clear that this function is extra consistent with the European one than American one,” he defined.
Ek emphasised that the “govt” a part of the title was vital: “I’m nonetheless retaining an workplace right here with Gustav and Alex, engaged on numerous forms 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 will likely be there as a buddy, 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
Wanting towards the corporate’s long-term technique, Ek remained bullish on Spotify’s future progress potential.
“I nonetheless consider, with each fiber of my being, that we’re early on this journey,” Ek stated. “And if you type of look out and also you type of see what’s nonetheless left on the desk for Spotify, there’s some wonderful alternatives.”
“I nonetheless consider, with each fiber of my being, that we’re early on this journey.”
He highlighted a number of key progress areas: “There’s the following era of shoppers that at the moment are coming on-line in a really large approach. We have now an enormous a part of the world that also isn’t actually accustomed to streaming as a lot as we take it as a right right now, with every thing from Asia to Africa, [which have] extremely populous areas and really younger demographics.”
Ek additionally pointed to technological development as a driver: “We have now new know-how developments, new type elements, AI, all of those different issues.”
He invoked a Invoice Gates quote to border his pondering: “Individuals are inclined to overestimate the quick time period and underestimate the long run, and that’s actually one of many issues that Alex, Gustav and I speak lots about.”
“I’m gonna preserve pushing for us to go searching the nook, keep targeted on the long run, and preserve exhibiting up on daily basis and make gradual enhancements, as a result of that’s long run what results in one of the best outcomes,” Ek added.
4. On Spotify’s success so far, Ek stated: “In a single day success doesn’t occur in a single day”
When requested about key initiatives to drive long-term progress, Ek mirrored on the corporate’s two-decade journey.
“As I replicate again on twenty years of Spotify, there’s a number of phrasings that come to thoughts,” Ek stated.
“One in every of 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 right now with.”
He emphasised that this strategy would proceed: “Yeah, I’m gonna preserve pushing for us to go searching the nook, keep targeted on the long run, and preserve exhibiting up on daily basis and make gradual enhancements, as a result of that’s long run what results in one of the best outcomes and that I do know is the product of what Spotify is right now.”
5. Ek says he’ll convey an “outdoors in perspective” from his work with different corporations
Discussing how he could be most helpful in his new function, Ek pointed to the worth of exterior views.
“One of many type of future-looking facets can also be the outside-in perspective,” Ek stated. “One of many wonderful issues that I really feel now having been concerned with corporations like Neko Well being, is that you simply do get a special perspective about totally different working environments, totally different cultures.”
He acknowledged each the strengths and potential limitations of Spotify’s long-tenured group: “We have now a group of extraordinarily tenured [employees]. Lots of people have been right here for 10, 15 years and actually grown up with the corporate.
“I believe that’s 99% a superpower that we now have right here as an organization. And Spotify wouldn’t have been what it’s right now if it weren’t for all of the ‘Spotifiers’ previous and current that helped construct the corporate into what it’s right now.”
“However with all that stated,” he continued, “one of many actual issues as nicely is it is very important be capable of draw on inspiration from the surface.”
Ek defined that one among his “new superpowers is that I do get to take a seat on the within on among the different companies as nicely that I’m serving to construct, and seeing what it actually is like to start out a brand new startup, as an example, in 2025 and what are among the instruments and choices you can also make, and the way can that affect Spotify in a constructive approach”.
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 stated. “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 yr. We rolled out audiobooks to extra markets. We simply improved the free tier, which goes nicely. 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 right now, at Spotify, we see 3% of the world’s inhabitants paying us on a recurring foundation for product that they’re loving.”
In response to Spotify’s Q2 2025 earnings report, the platform noticed its world Premium Subscriber base develop to 276 million paying customers in the three months ended June 30, up by +8 million internet 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% yr over yr to 696 million.
Wanting forward, he stated: “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 “probably the most thrilling time” for product growth “in in all probability 15 to twenty years”
Requested about his priorities and what excited him most, Söderström targeted on synthetic intelligence and technological transformation.
“We’re in the course of a macro wind referred to as AI. There are higher suggestions, extra personalization, however we additionally assume it’s going to finally find yourself in new type elements,” Söderström stated.
He added: “My high precedence, my one, two and three, is to ensure 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 via the earlier large 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 probably the most thrilling time I’ve ever had, till AI, as a result of now every thing is about to alter once more.”
“Again within the shift to cell, we managed to place the corporate to truly [use] that macro wind as a tailwind as an alternative of a headwind. And that is what we need to do now as nicely,” he defined.
Söderström concluded: “I believe for those who ask anybody in product, that is probably the most thrilling time in in all probability 15 to twenty years, and then you definitely need to be at an organization that has huge affect. In order that’s why I’m excited.”
