MORGAN STANLEY – Despite a recent slowdown in user growth for dating apps, the industry is expected to deliver at least 10% annual growth through the end of the decade, according to Lauren Schenk, Morgan Stanley's equity analyst. The industry will shift its focus from user growth to monetization as companies move towards developing new products and features to convert users to paying customers. Currently, ~32% of the U.S. single population uses online dating, and of those, slightly more than a quarter pay. "An increased push toward monetization would drive 70% of revenue growth from 2022 to 2030, compared with 60% from 2014 to 2022," says Schenk. She estimates the industry monetization rate has doubled to 26% over the past eight years and could grow to 32% by 2030. Even small changes in the number of users paying for an app can have an outsized impact on revenue growth, Schenk says. Currently, the average paying user spends between $18 and $19 per month on either subscriptions or a la carte purchases.
Month: April 2023
Bumble Survey: Gen Z Prefers Active First Dates Over Bar Scenes
Dating App Feels Launches New Feature “Feels Show” for Shared Content Experience
PRESS RELEASE – The dating app Feels has launched a new feature called "Feels Show," allowing users to watch exclusive content together in real time based on shared interests. The first Feels Show will be in partnership with the Guko Comedy Club and will feature digital stand-up comedy. Feels has ~2M users and is the top dating app for Gen Z in France. The app plans to offer a variety of shows to cater to different audiences and interests.
UK Android App Devs to Get Choice of Billing System on Google Play
THE REGISTER – The UK's Competition and Markets Authority (CMA) says Google has promised to allow developers in the UK to use alternative payment options. Under the new UK proposals, if the CMA signs off on the commitments, instead of obliging devs to use Google Play's own billing system for in-app purchases, they will be able to offer a different payment system of their choosing, dubbed "Developer-only Billing." They may also offer users a choice between an alternative payment system and Google Play's billing system, known as "User Choice Billing" (UCB). Google started testing third-party payment systems' access to its Play Store in South Korea in March 2022, with Spotify being one of the pilot testers. By Nov 2021, Google expanded the app dev billing pilot to include the US, Brazil, and South Africa, with Bumble joining Spotify as one of the pilot testers. Google confirmed that in both the UK and EEA, alternative billing would bring a 3% reduction in fees. Critics have argued that this proposal will not create meaningful competition and is merely a reallocation of fees, but Google has stated that it appreciates the CMA's approach and will continue to listen to feedback.
Study Finds 75% of Singles Open to Use AI-powered Chatbot
CNN – A new study by Kaspersky has found that 75% of dating app users are willing to use an AI-powered chatbot to improve their chat up lines. 57% of all respondents believe that using AI in an online dating setting to be dishonest. The study found that 54% of single men surveyed said they would be open to using the AI chatbot to deceive a potential partner on a dating app in a bid to make themselves appear funnier or smarter, while 51% of single women respondents admitted they would be using the AI tool to speak to multiple potential partners at the same time.
Replika CEO Predicts Virtual AI Companionship for Everyone in 5-10 Years
FOX NEWS – Replika CEO Eugenia Kuyda predicts that in 5-10 years, people will have virtual AI companions to schedule their lives and watch TV with. Replika is an AI-based chatbot app that allows users to create, name, and personalize their own AI chatbots. The app is designed to provide companionship to users who may struggle with loneliness, grief, self-esteem, and PTSD. The chatbots on Replika can chat with users about their daily lives, ask questions, and provide emotional support. The app claims to have 10M users worldwide. Kuyda emphasized that Replika intends to avoid the social media model of high engagement and constant advertising. Instead, Replika "nudges" users after 50 messages to prevent unhealthy attachments to chatbots.
Geoff Cook – Do Things That Don’t Scale – Then Scale Them
LTR – Geoff is the former CEO & co-founder of The Meet Group, a social dating and live-streaming company. He's also former co-CEO and GM of video for the parent company ParshipMeet Group. He successfully transitioned the company from 90% advertising revenue in 2016 to 60%+ user-pay revenue while dramatically expanding revenue by investing heavily in live-streaming video.
Geoff joined the dating industry in 2005 and pioneered one-to-many video. He discussed the challenges that startups face in their early stages and the importance of scrappy tactics, such as manually recruiting users or focusing on a narrow market. Cook emphasized that building a better mousetrap is usually not enough to launch a successful startup; it often takes something remarkable, and founders must be willing to do things that are messy and don't scale in order to get there. He also shared how this philosophy was used at The Meet Group to roll out their live-streaming product.
The February LTR was kindly sponsored by technology providers Livebox by The Meet Group, Courtland Brooks and Matchmaker.com
Bumble Says UK Cyber Flashing Bill Isn’t Enough
MASHABLE – Bumble, along with UN Women UK, TV personality Amy Hart, and the magazine Grazia, are calling for a change in the UK's proposed Online Safety Bill (OSB). The current legislation concerning cyber flashing, or sending unsolicited nude images without consent, is based on whether the sender had harmful intent. This is difficult to validate and prove, Bumble and supporters say, and would give room for those who cyber flash to claim it was a "joke." Instead, Bumble's campaigning for the cyber flashing portion of OSB to be consent-based. Almost half (48%) of UK adults aged 18-24 have received a sexual photo they didn't ask for, according to a 2021 survey of 1,800 respondents in England and Wales.
News by Company – Super Useful Reference List
OPW – One of the things that makes OPW.news special is the "News By Company" historical reference list.
Online Personals Watch was started in 2004 and we have faithfully catalogued the news on hundreds of dating apps. OPW has become quite a useful historical research tool at this stage. So, I'd like to point out a little link on the sidebar of OPW that may be useful for you. If you'd like to look up a company and see their news in summary format, along with any interviews that I may have done with them over the years, please see "News By Company", on the OPW sidebar on web, or down below if you're reading OPW on mobile. Scroll all the way to the bottom of that page to see the DeadPool, as well. Let me know any questions. 😉 – mark@courtlandbrooks.com
How DOWN Dating App Shifted Online Dating Culture
READWRITE – The DOWN Dating App, originally launched as "Bang With Friends" in 2013, changed online dating by focusing openly on casual hookups. It gained popularity quickly, even surpassing Tinder initially. The app's honest approach influenced other dating platforms to be more transparent. DOWN's features, like location-based matching and a three-directional swipe system (up for serious, down for casual), offer a tailored user experience. The app continues to evolve with tools like "3Some" and "Snap Match," promoting a safe, sex-positive environment.