Spotify founder Daniel Ek resigns as CEO and assumes a new position within the company.

Daniel Ek, the co-founder and current CEO of Spotify, has announced his intention to step down from his role and transition into the position of executive chairman, effective January 1. This strategic shift was revealed by the company on Tuesday, marking a significant change in leadership at the globally recognized music streaming service.

Under the new structure, Gustav Söderström, the chief technology officer, and Alex Norström, the chief business officer, will take on the roles of co-CEOs, working closely with Ek and reporting directly to him. Both Söderström and Norström will also join Spotify’s board of directors, following their appointment as co-presidents in 2023.

Spotify, which was established in Sweden in 2006, has seen considerable growth since its inception. The platform has expanded internationally and diversified its offerings by incorporating various audio formats. Daniel Ek stated that throughout his tenure, he has always envisioned Spotify as a transformative force in the music industry. He underscored the service’s significant impact, noting that it has successfully garnered over 700 million users worldwide, thereby redefining listening experiences globally.

In his statement regarding this leadership transition, Ek emphasized the gradual shift of day-to-day management responsibilities to Söderström and Norström. He indicated that this change is more about formalizing existing dynamics than altering operational procedures. As executive chairman, Ek intends to focus on the long-term trajectory of the company while maintaining close engagement with the board and the co-CEOs to ensure alignment.

This leadership change comes at a tumultuous time for Spotify, following backlash from several artists who have withdrawn their music from the platform. Notable groups such as Massive Attack and King Gizzard & the Lizard Wizard have ceased their association with Spotify after Ek’s investment in the German AI drone manufacturer Helsing was perceived as contradictory to the values of many creators. The artists voiced their concerns about the ethical implications of their work funding technologies that promote violence and harm.

Moreover, Spotify has faced scrutiny regarding its royalty payment structure, which many artists argue does not adequately compensate them for their contributions to the platform. As the music industry continues to evolve, Spotify’s leadership shift and its implications for artist relations remain critical areas for observation in the months to come.

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