Spotify Leadership Change Fails to End Artist Boycotts
Daniel Ek will become Spotify executive chairman in 2026, with Söderström and Norström as co-CEOs. Artist boycotts persist over Ek’s military AI investment. Low streamshare royalties and subscription changes reduce artist income, prompting regulatory scrutiny. Ek retains strategic control, while some artists succeed independently of Spotify.
Daniel Ek transitions to executive chairman role
Musicians continue boycott over ethics and payments
Spotify pays artists between $0.003 to $0.005
Ek retains strategic control over company decisions
Artists protest €600 million military AI investment
Regulatory scrutiny intensifies in Europe and America
Audiobook bundling reduced music royalties by $150M
Spotify founder Daniel Ek announced on September 30, 2025, that he will transition from chief executive officer to executive chairman effective January 1, 2026. Gustav Söderström and Alex Norström will assume co-CEO responsibilities. The company stated the move formalizes existing operational structures rather than signaling a strategic shift.[1][2]
Artist Boycotts Continue Despite Leadership Change
Musicians boycotting Spotify over ethical concerns have not altered their stance following Ek’s announcement. In July 2025, artists including:
Deerhoof
King Gizzard & the Lizard Wizard
Massive Attack
Xiu Xiu
Godspeed You! Black Emperor
withdrew their catalogs from the platform. These actions protested Ek’s €600 million investment in Helsing, a German defense firm developing artificial intelligence systems for military drones and battlefield operations, through his investment company Prima Materia.[3][4][5]
Key statements from artists:
Deerhoof – Vocalist Satomi Matsuzaki stated the band refuses to return its music until Spotify substantially increases artist compensation.
Massive Attack – Described the situation as imposing both an economic and moral burden on creators, with subscription fees and artistic work funding weapons technology.[2][6]
Spotify distributes royalties using a streamshare model rather than fixed per-stream rates:
Average payouts in 2025 ranged from $0.003 to $0.005 per stream.
An artist receiving one in every million streams earned over $10,000 on average in 2024 (Spotify’s March 2025 Loud & Clear report).
Comparison with other platforms (February 2025 analysis by Duetti):
Spotify: $3 per 1,000 streams
Apple Music: $6.20 per 1,000 streams
Amazon Music: $8.80 per 1,000 streams[7][8][9]
Additional issues:
Independent musicians with fewer than 1,000 annual streams receive minimal earnings under Spotify’s April 2024 demonetization policy.
The platform paid out more than $10 billion to rights holders in the first half of 2025, yet many artists report insufficient income to sustain their careers.[9][10]
Regulatory Scrutiny Increases
Both the European Parliament and United States Congress have initiated inquiries into streaming royalty transparency and fairness. Investigations focus on whether current payment models adequately compensate creators for their work.[11]
Subscription Changes Impact Artist Revenue
Key developments:
In 2024, Spotify integrated audiobooks into its Premium subscription tier without raising prices.
Industry analysts estimate this reduced music royalty distributions by approximately $150 million over 12 months.
Record profits exceeded €1 billion in 2024 while subscription prices increased and workforce was reduced by 17%.
In February 2025, Grammy-nominated songwriters boycotted Spotify’s songwriter of the year party, citing decreased royalties.[8][12][13]
Ek Retains Strategic Control
Spotify’s official announcement confirmed:
Ek will remain more involved than typical executive chairmen at American companies, reflecting a European governance approach.
Söderström and Norström, each with over 15 years at Spotify, will report directly to Ek.
Ek will focus on long-term strategy, capital allocation, and regulatory matters.[2][14]
Industry perspective:
Artists and observers view the leadership transition as largely symbolic, noting Ek continues to guide major decisions and company direction.[15]
Artists Succeed Without Spotify
Examples of artists thriving outside streaming platforms:
Joanna Newsom – Has never made her catalog available on Spotify, calling the service a villainous cabal.
Cindy Lee – Album Diamond Jubilee topped multiple 2024 year-end charts despite existing only as a YouTube upload and limited physical releases, never appearing on streaming services.[16]
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Updated article with latest facts from October 2025 sources
Rewrote opening paragraph in BLUF format for immediate clarity
Restructured content with proper H2 and H3 headings for better readability
Expanded coverage of regulatory inquiries in EU and US
Added context about Spotify's 2024 financial performance and workforce reductions
Included comparison data from competing streaming services
Enhanced FAQ section with comprehensive, actionable answers
Updated all citation sources to 16 authoritative references
Optimized SEO meta descriptions and key points formatting
Improved factual precision throughout article body
— by Howayda Sayed
Verified all financial and leadership details using cited sources.
— by Howayda Sayed
Replaced the headline with a clearer, more precise version.
— by Howayda Sayed
Initial publication.
Correction Record
Accountability
— by Howayda Sayed
Verified Daniel Ek's transition date of January 1, 2026, from Reuters and BBC official reports
Confirmed €600 million Helsing investment amount through multiple sources including Euronews and Business & Human Rights
Updated per-stream payout figures with 2025 data from TuneCore and Duetti analysis
Corrected artist boycott timeline to July 2025 based on Euronews reporting
Verified $10 billion H1 2025 payout figure from ArtistPush and Spotify Loud & Clear report
Confirmed audiobook bundling impact of $150 million from TechCrunch March 2025 analysis
Added February 2025 Grammy songwriter boycott details from TechCrunch
Verified co-CEO names Gustav Söderström and Alex Norström and their 15+ year tenure
Corrected Cindy Lee album title to Diamond Jubilee with accurate chart performance
Removed speculation and replaced with sourced factual statements throughout
FAQ
Who are Gustav Söderström and Alex Norström?
Both executives have spent over 15 years at Spotify as co-president of product/technology and chief business officer respectively. Their promotion to co-CEO formalizes existing operational structures rather than signaling strategic change.
How does Daniel Ek's new role affect Spotify operations?
Ek transitions to executive chairman but retains strategic control. The new co-CEOs, Gustav Söderström and Alex Norström, will report directly to him. He remains more involved than typical American chairmen, focusing on long-term strategy, capital allocation, and regulatory matters. Artists and analysts view this as a largely symbolic change that maintains his decision-making authority.
What changes do artists want from Spotify?
Artists demand substantially higher per-stream royalty rates and greater transparency in payment calculations. They want Spotify to stop reducing royalties through content bundling and demonetization policies. Many also call for Ek to divest from defense technology investments they consider unethical, particularly his €600 million stake in Helsing's military AI systems.
What military applications does Ek's Helsing investment support?
Ek's €600 million investment supports AI systems for military and defense applications. Artists argue this channels streaming revenues into weapons technology, creating an ethical concern about whether creators indirectly subsidize defense capabilities.
Are other countries addressing streaming compensation fairness?
Yes. Turkey's competition authority launched an antitrust investigation into Spotify. Independent labels, accounting for 80% of new European releases, report disproportionate revenue impacts and have filed formal complaints with the European Commission.
When will streaming compensation models change?
No official timelines exist, but regulatory pressure is expected to intensify through 2026. Major platforms have historically resisted fundamental changes, citing technical complexity and contractual constraints.
How are artists succeeding without Spotify?
Joanna Newsom and others build careers through direct fan sales, physical formats, and independent channels, generating substantially higher revenue per listener than streaming royalties.
