With Spotify entering a new era of leadership, majors doubling down on detection tech, and Gen Z turning away from traditional discovery, the music industry is adapting once again… to everything from metadata to mindset.
#1. Daniel Ek to Step Down as Spotify CEO
Of course, we were to start with this. After nearly two decades of building and managing, Daniel Ek will step down as CEO of Spotify on January 1, 2026. He’ll transition into a new role as Executive Chairman. Current co-Presidents Gustav Söderström and Alex Norström will step in as co-CEOs, formalizing a leadership model the company has already been using since 2023. Ek says he’ll shift focus to long-term strategy, capital allocation, and regulatory affairs, closer to a European-style chairman role. Spotify’s next chapter begins with a new title, but a familiar playbook.
#2. Merlin Re-Ups Spotify Licensing Deal
Let's stay with the main character for a bit. Spotify has renewed its global licensing agreement with Merlin, the digital rights agency representing tens of thousands of independent labels and distributors. The deal ensures continued access to music from hundreds of indie markets while reinforcing Merlin’s seat at the negotiation table. The agreement also includes provisions for product development, data insights, and promotional opportunities, underscoring the continued strategic role of independents in platform growth.
#3. Gen Z Is Losing Interest in Music Discovery
MIDiA’s latest blog reveals a concerning trend: Gen Z is engaging less with music discovery overall. Many now consider music to be a “background medium” rather than a destination experience. With algorithm fatigue on the rise and competition from short-form video content, traditional discovery pipelines are faltering. For labels and publishers, this means deeper storytelling and fan activation are more important than ever. Surface-level engagement is no longer enough to earn loyalty (and streams).
#4. Universal & Sony Back AI Music Detection Startup
Universal Music Group and Sony Music have partnered with SoundLabs, a new AI detection platform built to identify unauthorized use of copyrighted works in synthetic music. Using a proprietary neural fingerprinting technology, they claim to track musical attributes across AI-generated outputs, even if they've been disguised or repurposed. As AI music continues to flood DSPs, this kind of backend infrastructure could become essential for rights enforcement and royalty attribution.
#5. Spotify Cracks Down Again on AI “Slop”
Following weeks of AI-related announcements, Spotify is reportedly taking further steps to curb “slop content”. Meaning low-quality or spammy tracks are often generated in bulk using AI tools. The platform is tightening its metadata requirements and improving detection systems. The move reflects ongoing pressure from rights-holders and listeners alike to maintain quality control, especially as DSPs grapple with the surge of AI-generated uploads.
