Case in point: the company is replacing a former board member with Jason Hirschhorn, best known for his executive roles at MTV Networks, Myspace and Sling Media. He's no stranger to the digital media world, but his different perspective (his resume revolves around the social side of music) could prove useful as Pandora shifts its strategy.

Whatever happens next, Westergren's departure is more than a little symbolic of both the company's troubles and its eagerness to turn the corner. Pandora was hot in its early years, when streaming music was relatively new and just having customized internet radio was special. Now, however, on-demand streaming is where it's at -- and there's no question that Pandora is late to the party. Westergren has guided Pandora through some tough times, most notably a royalty battle with the recording industry, but he faced a particularly daunting challenge in keeping his service relevant at a time when Spotify and Apple Music dominate. While his successor won't necessarily fare any better, his exit is an acknowledgment that the status quo simply isn't good enough.