Title is self-explanatory, but Jared Newman for Time Tech had this to add:
"It’s worth noting that Pandora did turn a small profit last quarter, according to TechCrunch, but the company expects heavy losses ahead, possibly as high as $20 million in the first quarter of 2013."
Pandora is one of those services I don't use much anymore now that I've got Spotify, but if I did use it more than a couple times a month, I would definitely become a paying subscriber. Hell, I might just sign up anyway. These guys provide an excellent service and have done so for years.
This is just another example of the recording industry's greediness forcing good services to employ these kinds of tactics in order to survive. Ugh.