More than 18 years after founding Spotify and completely changing the global music industry, Daniel Ek, founder and CEO, has announced that he will resign next year.
The 42-year-old businessman said he is looking for the next "Spotify", this time not in music but in the survival fields of Europe: national defense and health.
The creator of the global music empire
When Spotify was founded in 2006, Ek was only 23 years old. At that time, the global music industry was in crisis due to copyright infringement and sales declined.
The idea of streaming copyrighted music, both convenient for users and ensuring artist rights, has been considered impossible.
However, Ek is steadfast in its vision: "If music is as easy to access as turning on a water pump, users will come".
Nearly 20 years later, Spotify has become the world's largest music streaming platform with more than 500 million users and is valued at about 140 billion USD.
Reasonable price registration packages, playlist suggestions by algorithms and expansion to podcasts, talk books... have turned Spotify into a familiar global cultural tool.
New direction
Ek said he will move to the role of CEO at Spotify to have more time to focus on new projects. He has pledged to invest 1 billion euros (about 1.18 billion USD) through the Prima Materia fund to support deep technology companies, artificial intelligence, healthcare and climate technology.
In the health sector, Ek co-founded Neko Health in 2018, a company specializing in disease prevention and early detection, and has raised 325 million USD.
In defense, he invested in Helsing (Germany), a company that manufactures drones for AI-powered fighters, currently valued at $12 billion and considered the largest defense startup in Europe.
Controversy over technology weapons
The investment in Helsing caused Ek to face many strong reactions. Some famous artists such as Massive attack, King Gizzard & the Lizard Wizard have withdrawn music from Spotify to protest.
Music and weapons are not a good combination, commented analyst Simon Dyson (Omdia).
Spotify spokesperson declined to discuss Ek's personal decision, but Helsing insists their technology is only for defensive purposes in Europe.
This is not the first time Ek has encountered criticism, from the controversy over artist remuneration to the controversial podcast deals. However, many people still recognize him as having contributed to fighting copyright infringement and creating a legal model, helping music reach the general public.
Heritage and transformation
Born in Stockholm, Ek started a business very early before joining Martin Lorentzon to start Spotify. Under his leadership, Spotify has not only changed listening habits, but also reshaped the way music is distributed and consumed.
Millions of people now consider Spotify subscription fees as a monthly utility, while playlists and pods have become a cultural habit.
Although he is preparing to focus on new areas, Ek confirmed that he will still be with Spotify in the future.
