Daniel Ek, Spotify's founder and CEO for 15 years, announces he is stepping down from the CEO role. He will remain as chairman while the company searches for a successor. The news comes amid challenges for the music streaming service.
Daniel Ek founded Spotify in 2006 and has led the company since its 2008 launch. Under his leadership, the service grew from a Stockholm startup to a global giant with over 600 million users. Ek announced his decision in a blog post on Spotify's website on September 20, 2024.
"After 15 years as CEO, I feel it's the right time to hand over the wheel to someone with fresh energy," Ek wrote. He emphasized that Spotify faces great opportunities but also competition from platforms like Apple Music and TikTok. The company's stock fell 3 percent following the news on the New York Stock Exchange.
Sources within the company indicate a recruitment process that could take several months. Ek will focus on strategic initiatives like AI integration in music services. The background includes Spotify's latest quarterly report, showing a profit of 250 million euros but also rising costs for artists.
In a separate analysis in Dagens Nyheter, Ek's ambitions for global dominance are criticized. Journalist Gabriel Zetterström writes: "The person Daniel Ek stood in the way of Spotify's world domination through his personal vision that sometimes clashed with industry realities." Zetterström points to conflicts with record labels and artists but notes that Ek's departure could pave the way for more balanced leadership.
Spotify's board welcomes the decision and highlights Ek's contributions to the digitalization of the music industry. The company, based in Stockholm, continues to expand with podcasts and live events. No immediate changes in leadership were announced beyond Ek's step back.