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The core team for the contest was announced by SVT and the EBU on 26 October.

Johan Bernhagen and Martin Österdahl were Executive Producers, while Tobias Åberg was Head of Production.

The three live shows were directed by Sven Stojanović and the contest was produced by Christer Björkman.

The EBU announced on 18 February 2016 that a new voting system would be implemented at the contest for the first time since 1975.

Portugal withdrew, largely due to their national broadcaster's insufficient promotion of their music-based media, while Romania had originally planned to participate, but was forced to withdraw due to repeated non-payment of debts by their national broadcaster to the European Broadcasting Union (EBU).

The contest was also the first to implement a voting system change since 1975: each country's professional jury points were announced largely as before, while the results of each national televote were combined and announced in reverse order.

SVT announced on 1 June the conditions under which cities and venues could announce their interest in hosting the contest: Venue of the final of Melodifestivalen since 2013.The Ericsson Globe has a capacity of approximately 16,000 attendees, and this was the second time the contest has been staged at the venue, after the Eurovision Song Contest 2000.Host broadcaster Sveriges Television (SVT) announced on 24 May, the day after winning the 2015 contest, that the Tele2 Arena in Stockholm was their first choice venue.In the final, Australia finished second, improving on its debut in 2015, while Bulgaria finished fourth, its best result at the time since its debut and first participation in a final since 2007.Justin Timberlake performed during the interval act of the final.

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