Growth of online dating industry
Though the firm said subscribers are joining at faster rates and staying longer, analysts last year estimated e Harmony’s revenue growth had slowed to a crawl, and was still half that of the Match Group’s, the mix of Tinder, Match and OKCupid that brought in more than 0 million in the U. Many market-watchers have questioned the basic premise of e Harmony and other sites, which depend on long detailed profiles and dedicated algorithms.Economist Dan Ariely and other researchers have argued that online dating profiles rest on a fatal flaw: They show “searchable” attributes, like job or religion, while ignoring the key details of a dater’s personality: sense of humor, conversation style, etc.
It’s not clear that the young and perky are the best market for corporate matchmakers.
“There are limits to the percentage of single people who will become active Tinder users and repeating ‘casual daters,'” Morgan Stanley analysts said in a February note to clients.
“And in our view, Tinder is reaching those limits.” EHarmony has not shied away from its reputation as an overbearing matchmaker, slow but comprehensive, with long-term interests at heart.
Often, “browsing” will be free, but messaging or contacting other users will require a subscription.
Alternatively, some websites generate revenue solely through advertising and are free for users.