Category: Outlets – Reuters
Tinder to Provide EU Users With More Clarity on Prices to End Probe
REUTERS – Tinder will improve pricing transparency for premium services in the EU after consumer watchdogs raised concerns. The app uses automated methods to offer personalized discounts, but users were not informed, breaching consumer laws. Tinder will now clearly disclose personalized discounts and their factors. The EU stresses the need for transparency. Tinder stated discounts are applied evenly based on various factors. Compliance will be monitored, with fines possible for non-compliance.
A New Lawsuit Claims Match Group’s Apps Encourage Compulsive Use
REUTERS – Match Group was sued on Wednesday in a proposed class action claiming that its dating apps Tinder, Hinge and The League are designed to addict users, generating more profit for the company, rather than help them establish relationships. Match employs features "to gamify the platforms to transform users into gamblers locked in a search for psychological rewards that Match makes elusive on purpose," according to the complaint filed in federal court in San Francisco. The six plaintiffs – who live in California, Florida, Georgia and New York – called this inconsistent with Match's ad slogan that its apps are "designed to be deleted." Match rejected the plaintiffs' claims.
by Jonathan Stempel
See full article at Reuters
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Gamification: a Potential Boost for Tinder’s Revenue
REUTERS – Tinder is introducing a $500-a-month subscription tier called "Tinder Select". Although Tinder experienced a 7% revenue growth last year, it lags behind competitor Bumble. Despite Tinder's reputation as a hookup platform, Match isn't maximizing its revenue potential. By adopting a gamified approach similar to apps like Candy Crush Saga and Roblox, Tinder could increase its revenue. For instance, if Tinder charged a penny per swipe from its massive user base, it could surpass Match's anticipated annual revenue.
Dutch Regulator Rejects Apple’s Objections to Fines
REUTERS – Dutch competition watchdog ACM has rejected objections by Apple against fines of 50M euros ($53M) it gave the company over failure to comply with orders to limit the dominant position of Apple's App Store. The ACM said Apple has complied with most of its demands to open its App Store to alternative forms of payment for dating apps in the Netherlands, but had not met an undisclosed third element of the conditions related to the fines.
ProSiebenSat.1 to Cut Jobs, Seeks Buyer for Dating Business
REUTERS – ProSiebenSat.1, a German media group, is planning to reduce costs and cut jobs while focusing on its in-house streaming platform Joyn. The company's CEO, Bert Habets, also announced plans to divest its online dating service, ParshipMeet Group, once it finds a suitable buyer. Habets did not rule out an initial public offering but said it was unrealistic in the current market climate.
by Klaus Lauer
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Blackstone and Bumble Are Still a Fitting Match
REUTERS – Blackstone's investment in Bumble has proved to be lucrative despite the company's decline in share price since the IPO in 2021. Blackstone bought a majority stake in Bumble in 2019, valuing it at ~$3B. Bumble's enterprise value is now closer to $4B, and Blackstone still owns 40% of its equity. The private equity firm has made back its investment and more, selling ~$2B in stock in the public offering, nabbing another $1B in a secondary offer, and receiving ~$300M in dividends. Blackstone's current stake, including a minority interest, is worth ~$2B based on public market prices.
Match Group to Lay off 8% of Its Staff as Growth Falters
REUTERS – Match Group joined a growing list of U.S. companies that are cutting jobs to rein in costs after it announced plans to lay off ~8% of its workforce, or ~200 employees, as spending on its dating apps slows. The job cuts were mainly in areas such as recruiting. The layoffs come as other tech firms, from Microsoft Corp to Amazon, shed tens of thousands of jobs to brace for a possible recession.
by Vansh Agarwal & Shreyaa Narayanan
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Match Group Forecasts Q1 Revenue Below Expectations
REUTERS – While a tough economy and a stronger dollar had also crimped its business, poor product execution at Tinder was the "significant" culprit, Match said. Dating app Hinge's business was also hit by product delays, among other headwinds. Shares of Match Group fell ~11% in trading after the bell. Match reaffirmed its 2023 revenue growth forecast of 5% to 10%. It expects revenue growth to reach double digits by the fourth quarter on increasing momentum in the second half. The company forecasts Q1 revenue between $790M and $800M, lower than analysts' estimates of $817.3M. Revenue fell 2% to $786M in Q4, also missing expectations of $787.3M. Total payers fell 1% to 16.1M.
by Vansh Agarwal & Shreyaa Narayanan
See full article at Reuters
Match Group Ups Antitrust Pressure on Apple in India
REUTERS – Match Group has filed an antitrust case against Apple with the competition regulator in India, accusing it of "monopolistic conduct" that forces developers to pay high commissions for in-app purchases. A similar dispute in the Netherlands resulted in a 50M euro fine for Apple and an agreement to allow different payment methods in Dutch dating apps. Apple says in India, 87% of apps on its App Store are those which don't pay any commissions at all.