The story of Daniel Ek – Mr Spotify

According to US business magazine Forbes, he’s the most important man in the music industry.

He’s on text messaging terms with U2 singer Bono and ‘Zuck’ with Facebook creator Mark Zuckerberg.

But now the year is 2006 and he’s 23 years old. He’s sold his red dream Ferrari and got rid of his city apartment.

Daniel Ek is sitting in a cabin in the woods, deep in depression and fumbling about for a purpose in life.

It’s late friday afternoon, but nobody looks as if they’re on their way home. From the atrium in the centre, with a view of the enormous open-plan office floors, it’s almost like a cross section of an anthill. Teeming with young professionals, some wearing headphones at their laptops, many with beards, a group are playing pool.

People are jostling over the meeting rooms, which are named after hits like ‘Pretty vacant’, ‘Poker face’ and ‘Teen spirit’.

“Did you definitely book the room?”

“Where can we sit?”

“Can you use a different room?”

When Spotify moved to new offices on Birger Jarlsgatan in Stockolm in 2012, the music giant took over three floors. As they expanded, other companies in the building were bought out and the head office now occupies five floors.

There’s no sign of the football field there’s been talk of.

But it’s true that everyone speaks English.

Jonathan Forster.Foto: Jens L’Estrade

We’ve managed to book a meeting with Jonathan Forster, Spotify’s managing director, and the first person to be begin work on the business side of things.

Forster has been around from the very beginning, when half a dozen young KTH graduates were assembling Ikea furniture in an apartment on Riddargatan, just a stone’s throw away.

It feels a long way off from our position at the top, in the lunch area with a view of half the city, in front of a stage on which artists like Veronica Maggio and Mando Diao have been invited to play at the company’s after-work drinks, and where Spotify founder Daniel Ek, 31, usually holds court.

– About once a month Daniel gets his leadteam together, either here or in the office in New York. They go on stage and talk to the whole company, they livestream it to the other offices. He sits upon the stage and do Q&A, he talks openly about whats going on, what the plans are, what we have to be worried about, explains Jonathan Forster.

– And its very cool, cause it does´nt leak.

The story of the cheeky little Swedish IT company that put the world at its feet is like a Hollywood film in itself, with a leading character who has experienced extreme success as well as huge nosedives.

The prologue to Spotify is written and enacted in the Stockholm suburb of Rågsved.

Daniel Ek grew up with a father who was out of the picture early on, with his mother Elisabet, his stepfather Hasse and younger brother Felix, under conditions that he described on the radio the summer before last as “An average Swede. We didn’t have much money”.

But music was around from the beginning.

“Music really was Daniel’s thing. If music wasn’t on his timetable, he would come to the music room anyway, or if he had a free period.”

 

His grandmother was an opera singer, her husband a jazz pianist and on the wall at home in Rågsved hung a classic Spanish, nylon string guitar.

Daniel Ek is four-five years old when he learns to play Swedish nursery rhyme ‘Lilla snigel’.

In secondary school he’s given the chance to combine two of his favourite subjects, music and technology. He installs the Internet at the Oasen youth club, where the story of Joakim Thåström’ and his punkband ‘Ebba Grön’ once started, creates websites for his friends and builds bands with a hint of Britpop.

When Daniel Ek was the guest presenter on Swedish radio show ‘Sommarpratarna’ (Summertime chats), he uses the opportunity to thank one person in particular, “Musikmajjen (music man) Tony, the driving force at my secondary school.”

– I was so proud when he mentioned me in the show. That kind of thing is so heart warming when you’ve worked for 40 years, says Tony Kinberg when Expressen reaches him.

– Music really was Daniel’s thing. If music wasn’t on his timetable, he would come to the music room anyway, or if he had a free period. He’s a really good singer and guitar player, says Tony Kinberg, who is still the music teacher, and explains that the Spotify creator played lead role in school musicals based on classic feature films on several occasions.

– He was in both ‘The Playboy of the Western World’ and Roman Polanski’s ‘The Fearless Vampire Killers’.

– Rågsved is what it is, there were a lot of troublemakers. I wouldn’t say that Daniel was in trouble, but music became a way for him to look forward to school.

Daniel Ek in ninth grade.

Music, and his interest in computers.

– He was into programming even then and was light years ahead of the others at school, says Tony Kinberg, who follows his old student’s successes with euphoria.

– It’s incredible how big it’s become, you can’t believe it’s true when you hear how much Spotify is worth! At first, when Spotify was in the papers, I didn’t understand what it was, but I got in touch with Daniel and he actually gave me my first year’s subscription for free.

The fact is that the boy from Rågsved was already good for (Swedish) millions before Spotify happened.

After three years at the IT college in Sundbyberg with top grades in eleven subjects, among them English, religion and datacom, Daniel Ek applies to study engineering at the KTH Royal Institute of Technology, but leaves after just eight weeks when he realises that the first year is all about theoretical mathematics.

Plus the fact, he business acumen has started to kick in.

He gets a job at TradeDoubler, then Europe’s biggest online advertisement company, and rapidly becomes successful. The money is rolling in and the door to the life he has always longed for is wide open.

“I realized the girls I was with weren’t very nice people. That they were just using me, and that my friends weren’t real friends”

 

At the age of 23, Daniel Ek has fulfilled his goals, he is financially independent, has a red Ferrari Modena in the driveway and a VIP card to the hottest clubs in the upscale Stockholm district of Stureplan. There were plenty of women to share the expensive bottles of champagne with, but not the women he was actually interested in.

– I realized the girls I was with weren’t very nice people. That they were just using me, and that my friends weren’t real friends, explains Daniel Ek in a recent interview with The New Yorker. They were people who were there for the good times, but if it ever turned ugly they’d leave me in a heartbeat.

– I had always wanted to belong and I had been thinking that this was going to get solved when I had money, and instead I had no idea how I wanted to live my life.

He sinks into depression, gets rid of his three room apartment in central Stockholm, sells his dream car and moves to a 29 m2 cabin 20 km out of town.

Read more here :http://www.expressen.se/nyheter/the-story-of-daniel-ek–mr-spotify/

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Here are 10 warning signs that the markets may drop further.

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MARIO DRAGHI :: Stability and Prosperity in Monetary Union

Source : http://www.project-syndicate.org/commentary/ecb-eurozone-economic-union-by-mario-draghi-2015-1

There is a common misconception that the euro area is a monetary union without a political union. But this reflects a deep misunderstanding of what monetary union means. Monetary union is possible only because of the substantial integration already achieved among European Union countries – and sharing a single currency deepens that integration.

If European monetary union has proved more resilient than many thought, it is only because those who doubted it misjudged this political dimension. They underestimated the ties among its members, how much they had collectively invested, and their willingness to come together to solve common problems when it mattered most.

Yet it is also clear that our monetary union is still incomplete. This was the diagnosis offered two years ago by the so-called “Four Presidents” (the European council president in close collaboration with the presidents of the European Commission, the European Central Bank, and the Eurogroup). And, though important progress has been made in some areas, unfinished business remains in others.

But what does it mean to “complete” a monetary union? Most important, it means having conditions in place that make countries more stable and prosperous than they would be if they were not members. They have to be better off inside than they would be outside.

In other political unions, cohesion is maintained through a strong common identity, but often also through permanent fiscal transfers between richer and poorer regions that even out incomes ex post. In the euro area, such one-way transfers between countries are not foreseen (transfers do exist as part of the EU’s cohesion policy, but are limited in size and are primarily designed to support the “catching-up” process in lower income countries or regions). This means that we need a different approach to ensure that each country is permanently better off inside the euro area.

This implies two main things. First, we have to create the conditions for all countries to thrive independently. All members need to be able to exploit comparative advantages within the Single Market, attract capital, and generate jobs. And they need to have enough flexibility to respond quickly to short-term shocks. This comes down to structural reforms that spur competition, reduce unnecessary red tape, and make labor markets more adaptable.

Until now, whether or not to carry out such reforms has largely been a national prerogative. But in a union such as ours they are a clear common interest. Euro area countries depend on one another for growth. And, more fundamentally, if a lack of structural reforms leads to permanent divergence within the monetary union, this raises the specter of exit – from which all members ultimately suffer.

In the euro area, stability and prosperity anywhere depend on countries thriving everywhere. So there is a strong case for sharing more sovereignty in this area – for building a genuine economic union. This means more than beefing up existing procedures. It means governing together: shifting from coordination to common decision-making, and from rules to institutions.

The second implication of the absence of fiscal transfers is that countries need to invest more in other mechanisms to share the cost of shocks. Even with more flexible economies, internal adjustment will always be slower than it would be if countries had their own exchange rate. Risk-sharing is thus essential to prevent recessions from leaving permanent scars and reinforcing economic divergence.

A key part of the solution is to improve private risk-sharing by deepening financial integration. Indeed, the less public risk-sharing we want, the more private risk-sharing we need. A banking union for the euro area should be catalytic in encouraging deeper integration of the banking sector. But risk-sharing is also about deepening capital markets, especially for equity, which is why we also need to advance quickly with a capital markets union.

Still, we have to acknowledge the vital role of fiscal policies in a monetary union. A single monetary policy focused on price stability in the euro area cannot react to shocks that affect only one country or region. So, to avoid prolonged local slumps, it is critical that national fiscal policies can perform their stabilization role.

To allow national fiscal stabilizers to work, governments must be able to borrow at an affordable cost in times of economic stress. A strong fiscal framework is indispensable to achieve this, and protects countries from contagion. But the crisis experience suggests that, in times of extreme market tensions, even a sound initial fiscal position may not offer absolute protection from spillovers.

This is a further reason why we need economic union: markets would be less likely to react negatively to temporarily higher deficits if they were more confident in future growth prospects. By committing governments to structural reforms, economic union provides the credibility that countries can indeed grow out of debt.

Ultimately, economic convergence among countries cannot be only an entry criterion for monetary union, or a condition that is met some of the time. It has to be a condition that is fulfilled all of the time. And for this reason, to complete monetary union we will ultimately have to deepen our political union further: to lay down its rights and obligations in a renewed institutional order.

Read more at http://www.project-syndicate.org/commentary/ecb-eurozone-economic-union-by-mario-draghi-2015-1#wT2uAcWGG5wpMyxM.99′

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