Spotify’s founder, Daniel Ek, has announced plans to step down as chief executive officer after leading the company for nearly 20 years. The change is set to take effect at the end of the year, with Ek’s two deputies, Gustav Söderström and Alex Norström, appointed as co-chief executives. Ek will continue to serve as executive chairman, where he will focus on long-term strategy.
This transition formalizes a shift in operations that began in 2023, when Ek delegated a significant portion of day-to-day management responsibilities. Despite stepping down, he has communicated to staff that he will remain deeply involved in major decisions affecting the company, which has over 700 million monthly users globally.
Founded in 2006 in Sweden, Spotify aimed to combat music piracy by utilizing advertisements and subscription fees to compensate rights holders. The platform has since expanded into podcasts and audiobooks, solidifying its influence in the audio content market. Nevertheless, this dominance has led to tensions with some musicians, who have voiced concerns over the payment model employed by the company.
Ek’s wealth has notably increased as Spotify has grown, with an estimated net worth of around $10 billion. He has invested in various ventures, including a European venture capital firm that supports companies like Helsing, which develops artificial intelligence-driven weapons systems. This investment has sparked backlash from artists such as Massive Attack, who recently accused Spotify of putting an “economic burden” on musicians and contributing to the development of morally contentious technologies.
Spotify has indicated that Ek’s decision to step down was planned prior to the controversy surrounding his investments and is unrelated to them. The new co-chief executives, both with over 15 years at the company, are expected to continue to report to Ek, who emphasized that the operational structure will remain largely unchanged for most employees. Following the announcement, Spotify’s shares fell by more than 4% in early trading.
Source: https://www.bbc.com/news/articles/c3rv35xp07lo?at_medium=RSS&at_campaign=rss