When people talk about hot trends on the web, Groupon is on the list, but for all the noise they’re making, the experts say that Groupon isn’t turning a profit and may have a hard time doing so in the future.
Now, it’s Pandora’s turn in the spotlight thanks to their announced IPO and hey, lookee there, they’re not making any money either. How can that be?
The generally accepted theory is, the more users you have, the more money you make, right? Not so. In Pandora’s case, more users means they have to spend more on music licensing, which should be off-set by more advertisers, but it’s not happening.