[jsnk]

It's easier said than done to think that charging more and putting more commercial will still allow Pandora to retain the customers. If rdio, Spotify, Rhapsody all are offering similar service at lower rate, what's to stop the customers from going to other services?

[smacktoward]

Pandora as it operates today is a money-losing enterprise. So assuming those competitors pay the same licensing rates, and barring one of them inventing some genius new revenue stream, the answer to "why won't users just switch to those other services" is that those other services will just go out of business.