The news: Spotify CEO Daniel Ek will step down in January 2026 to become executive chairman.

• In his place, chief product and technology officer Gustav Söderström and chief business officer Alex Norström will serve as co-CEOs, per a filing with the Securities and Exchange Commission (SEC).
• Ek said he will focus on the company’s “long arc” in his new role, which could include things like capital allocation, regulatory strategy, and long-term bets for Spotify’s future.

The streamer’s stock dropped 4.2% Tuesday following the news, a sign of potential investor anxiety over the leadership shake-up.

Why it matters: Spotify has grown from a small startup in 2006 to a leading global audio platform that’s competing across music, podcasts, audiobooks, and video. Having a founder remain as CEO indefinitely often works at early stages, but this transition could usher in fresh operational direction.

That’s especially relevant considering Spotify’s ad business stalled in Q2, missing analyst expectations on revenues and profits.

Looking ahead: The streaming industry, Spotify included, is under mounting pressure around profitability, licensing costs, royalty structures, and podcast ad spending. Spotify achieved annual profitability for the first time in 2024.

This change could revive shareholder confidence in Spotify’s growth plans and further differentiate it from competitors, especially as the platform faces pressure from YouTube and Apple.

• Moving from CEO to executive chairman could allow Ek to steer Spotify’s long-term direction while stepping back from day-to-day operations to focus on more strategic bets, structural changes, and regulations.
• Söderström’s and Norström’s combined experience—they helped oversee Spotify’s product road map, ad tech investments, and international expansion—positions them to drive this transition.

What this means for brands: The leadership change could help unlock new monetization paths—such as deeper AI-driven ad targeting, expanded creator tools, or new subscription ad models—to hone Spotify’s ad ambitions, provided the transition doesn’t create friction.

Brands should watch for investor days, ad tech announcements, or new targeting plans post-transition to see how Spotify’s business, pricing, and measurement options change.