Spotify founder Daniel Ek will step down as CEO on January 1, 2026, moving into the role of Executive Chairman after almost 20 years leading the company.

Co-Presidents Gustav Söderström, who runs product and technology, and Alex Norström, head of business operations, will become co-CEOs.

Ek said the change formalises the way Spotify has already been operating. “Over the last few years, I’ve turned over much of the day-to-day management and strategic direction to Alex and Gustav,” he told staff.

The shift comes at a critical moment for the streaming giant.

Spotify has grown to nearly 700 million monthly users and finally rolled out lossless audio this year. Lossless audio refers to digital sound that’s compressed in a way that retains every bit of the original recording.

The Swedish company also continues to push deeper into podcasts, audiobooks and AI-powered recommendations, while also expanding monetisation tools for artists.

Spotify CEO Daniel Ek

But challenges remain.

Artist compensation is under pressure, while AI-generated tracks are flooding the platform. Spotify has updated policies to curb fraudulent uses of AI but still allows fully synthetic albums.

Ek’s outside interests have also drawn scrutiny. He recently led a US$700 million ($1.07 billion) investment in Helsing, a defence tech firm developing AI battlefield software and drones.

Massive Attack and other artists pulled music in protest.

Ek says he now wants to focus on the “long arc” of Spotify’s strategy while exploring opportunities to back more European ‘supercompanies’.

Investors will be watching closely to see whether the dual-CEO structure can deliver growth while managing regulatory heat, artist backlash and intensifying competition from Apple and YouTube.