REUTERS – Dec 16 – German broadcaster ProSiebenSat.1 Media SE's e-commerce arm NuCom Group is exploring the acquisition of U.S. livestreaming app developer The Meet Group. NuCom, whose holdings include online dating website eharmony, has made a preliminary expression of interest to buy The Meet Group, the sources said, cautioning that there is no certainty that there will be negotiations that lead to a deal.
Category: Parship
Tim Schiffers, CEO of Parship, About Why eharmony Was a Good Match
PROSIEBENSAT1 – Dec 5 – Parship Group is the leading provider of serious matchmaking services. In addition to the well-known brands Parship and ElitePartner, eharmony has also been part of the Group since 2018. The acquisition of eharmony was a perfect match, said Tim Schiffers, the CEO. eharmony is considered the icon of online dating and established the market in the US back in 2000. By acquiring eharmony, the company is taking another step towards its internationalization. Besides the likewise positioning, there are also similarities regarding the product approach: After the registration process, singles fill in a questionnaire, which then determines specific features of their partnership personality. Based on the results, the matching process is being conducted. For Parship, this process is being achieved along the lines of "as many things in common as possible, as many differences as necessary". In the future, we are going to apply this successful approach to eharmony. The company focus is now on increasing eharmony's attractiveness and relevance for a broader population.
Tinder and Other Dating Apps Don’t Comply With Dutch Privacy Laws
NL TIMES – Oct 29 – Dating platforms Tinder, Happn, 50plusmatch, Parship, and Paiq are in violation of Dutch privacy law, according to consumers association Consumentenbond. They place tracking cookies without users' permission and their privacy statements are intentionally vague about who they share information with, according to the association. The consumers' association addressed the dating sites on this violation of the General Data Protection Regulation. Happn, 50plusmatch, and Paiq adjusted their cookies policy. Tinder and Parship did not.
by Janene Pieters
See full article at NL Times
Parship 2018 Financial Results
DEUTCHE STARTUPS – July 8 – Hamburg-based dating company Parship has generated ~125M euros in revenue in 2018. 93% of sales are attributable to the DACH region (Germany, Austria, Switzerland). The profit was 32.4M Eur, up from 18.6M in 2017.
Tinder Users Perceived as Less Trustworthy, Study Finds
PSYPOST – June 5 – People tend to view Tinder users as untrustworthy, according to new research from Germany. But the study in Computers in Human Behavior suggests that this anti-Tinder effect wears off over time. Tinder still has a reputation as a "hook-up" app. An initial online survey of 223 participants found that Tinder users were rated as less trustworthy than Parship users, who in turn were rated as less trustworthy than Facebook users.
Interview With Grant Langston, CEO of eharmony
OPW INTERVIEW – Feb 8 – I talked with Grant today about how things are going after eharmony's acquisition by Parship and eharmony's very revealing Relationship Happiness study. – Mark Brooks
How are things going after the acquisition?
The deal closed 1st Nov and its still very early. Things are going very well and the team is happy We're in the same pool as Parship. They have a lot of knowledge and we have a few things we can teach them. Different groups of people are sitting down from eharmony and Parship, marketing, customer service, etc, and seeing how our methods compare. Even though the US and Germany are both very prosperous countries there's a lot of differences. They have developed anti-fraud measures based on the threats they have. We have different threats and different systems. So that's been good to compare. We've taken on a couple of their employees in L.A. to teach them our ways. I feel very positive about the changes.
Where will eharmony be based in the future?
There's a lot of conversation about this going on. We have a long term lease on the L.A. office. Both sides are dedicated to keeping the USA and London offices going. There will be changes. i.e. with the tech stack. We've been around almost 20 years and have the benefit of momentum. We've had the same mission the whole time. That's good. But the code is dusty. And I'm very interested in how we might use some of their tech stack. I think it will be very helpful for us to update our technology.
How will the products be melded?
There are definitely parts of their product that I really love. We had a personality profile for years. It's what we built the business on. We ran the personality profiling feature for 10-12 years and it just seemed at a certain point people were not so interested in it, so we dismantled it. Parship has a really awesome personality profile. Its visually appealing and delivers some immediate value as users get into the service.
From a product viewpoint, noone will notice any difference in the short term with eharmony. We're working on the back-end right now. We've got to do a lot more from a cost and technology standpoint.
What do you make of Tinder being repositioned officially as casual, and Hinge being fully acquired today, and positioned in eharmony territory, meaningful relationships?
I know Justin, and I'm happy for him. When we look at the dating space there are a number of companies we keep an eye on. Bumble is a competitor. Hinge is certainly a competitor that we keep an eye on. We're focused on doing a better job of what we do. Any time Match tries to do something, they have enough firepower to make a dent in the marketplace. But we want to be where people are that want a meaningful relationship.
Where do you see eharmony in a couple years, for 2021, from a visionary standpoint?
We're focused on what our users want. The world of what we can give them is vast. There have been so many swings at features that on paper make sense, in the dating industry. i.e. video. The industry thought they'd move into video, and enabling people to share video. But that just hasn't proven to be true. Video is not the primary thing online daters want. We've looked at DNA matching. There's a lot of people that think that DNA and personality are connected. Obviously you could also match people genetically for someone to marry for genetic compatibility to have children with. But where does that become creepy to users? This is research we haven't done, and frankly I'm not very confident about DNA matching. We think people want to go on more dates. We've talked about how to guide people through our product and onto more dates. We think technology can help with that. A.I. can give us so much more capacity. When people come into eharmony and take our questionnaire, we observe their behavior and it often doesn't synch up with what they said they wanted. If you look at the matches they interact with, that is often a world quite different from what they said they wanted. We observe that and adjust to it. But some people feel they're being spied on, in some weird way. This is a set of computers that are guiding their future matching. So this is going to be something that as society gets more comfortable with A.I. they'll be more willing to let us help them in certain ways.
Tell us about your new Happiness Index
Last year we did some research about happiness in relationships. We're interested in how relationships are going. So we decided to do annual research on relationship happiness. It's on over 2300 people who are statistically representative of USA adults. 83% say they're happy in their relationships, and 1 in 10 say they're not happy in their relationships. The thing that accounts for their happiness is not surprising. People who are similarly educated, politically aligned, and have similar religious affiliations are happier. People say opposites attract, but it really isn't true. Having someone similar just creates a lot less friction in your life.
One of the things that was most surprising from the study, was that intent had a lot to do with happiness. i.e. People actively looking for someone to form a relationship with. If you're the kind of person that is looking for a long term relationship, once you get into a relationship, you generally have a happier relationship. When someone who is negative about wanting a relationship forms a long term relationship, they're less happy. Being intentional about wanting a relationship really helps.
Also interesting… We are in the business of trying to find desirable people. Understanding what makes someone desirable is a pretty important thing to us. This study asks what makes a partner desirable. We assumed physical attraction would be the number 1 thing. It's in the top 5, but it's not 1, 2, or 3. Those things are intelligence, and emotional stability, and being happy! Being with someone that is just a happy person makes your relationship a lot happier. It's important to be with someone who is happy, and smart, and stable, more than physical attraction.
Why are you doing this research?
We feel like we need to know what's going on. Government do research, academics do research, and companies do research. Bit governments aren't doing this kind of research. Academics are focused on using students for surveys, which doesn't help us. So we stepped in to do research.
What else did you learn?
We learned couples who are more in tune with social justice movements are also more happy. So we have the MeToo movement about women being treated more fairly. Men have reported that understanding the MeToo movement has helped them in their relationships. It's interesting to watch things change. People who embrace for example relationships where they have equal power, vs where one person is more dominant, are more happy. Unfortunately, only about 50% of couples have equal power. Half have a more dominant partner.
Does this vary with age?
This research looks at a very wide range of ages. We see the Gen Z group (where the oldest is 24) have much higher levels of equality in their relationships. It will be interesting to see what happens as this group gets older. Gen Z, as a group, is more communicative, equal and adventurous.
______________
I should note, over 2300 people were in the study and were not eharmony users. A random selection consistent with US demographics. To be in the study, participants had to be in some kind of relationship, and the study was done across all age ranges and sexualities. Also interesting, 44% of couples have some kind mental health issues. – Mark Brooks
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The Future of eharmony + Parship – Parship CEO Interview
OPW INTERVIEW – Jan 4 – Tim Schiffers is the CEO of the PARSHIP ELITE Group. Together with their shareholder ProSiebenSat.1, a German media company, they acquired eharmony. I interviewed Tim Schiffers yesterday about the acquisition of eharmony. – Mark Brooks
What do you think of the term 'serious dating'?
We think 'serious dating' is a very good position in the market that cannot be attacked so easily. Classical dating services have come under pressure from apps such as Tinder and Badoo. This did not happen with Parship – it even helped us. With the rise of dating apps, online dating has become more and more normal for people, and as soon as they are looking for a serious relationship, chances are high that they will turn to services such as Parship or ElitePartner.
What will you do with eharmony?
eharmony is a pioneer. They are the inventor of online dating based on scientific methods. We feel eharmony has lost some relevance over the past few years by way of their communication and their approach to media and online marketing. In addition, their platform is not completely state of the art. Therefore, the challenge is similar to the one we faced when we acquired ElitePartner three years ago.
Will eharmony move to the Parship platform?
Yes, we are planning to bring the services together on one shared technical platform, the Parship platform. This migration project is quite challenging and will probably take up to 12 months to complete. As far as marketing activities go, we are well on the way with a number of initiatives around brand, media, online marketing and CRM.
Why does the eharmony deal make sense for Parship?
We share the same mission: Bringing people into happy relationships by believing in the concept of scientific matchmaking. That is what Parship and ElitePartner as well as eharmony have done for years; that is what drives every one of our employees. There are also other similarities such as strong, renowned brands and the need for a focused, effective marketing strategy.
What's your thoughts on Facebook Dating?
I see them more in the classical dating camp. They have brought online dating onto the agenda for more people, which is helpful.
Is Parship considering more international acquisitions/options?
We will be very busy with integrating eharmony, working with eharmony on marketing, CRM, and platforms. That is already a big piece of our internationalization; we are broadening out into the US, Canada, UK, and Australia. As you said, it's a match made in heaven. If we see something else that is a fit however, maybe there is another move.
Beware: It Is Now Illegal to Charge Users in Germany Full “Compensation for Value” When They Cancel Contract
DIE PRESSE – Dec 14 – Dating site Parship charges ~600Eur per year for their premium membership. Anyone who subscribes can cancel the contract within two weeks. But often dating platforms such as Parship and ElitePartner keep a large part of the money as "compensation for value". This is no longer allowed. The Chamber of Labor had filed a lawsuit against this practice – and got it before the Supreme Court. The (German) Supreme Court confirmed that this business practice was unlawful and would be prohibited. The dating sites are now only allowed to make only a time-dependent prorated assessment of value, in relation to the total term. For example for Parship: The company may, in a contract withdrawal after ten days with a total transaction of 600Eur for annual membership, only keep ~16Eur as "compensation for value". Prior to the new law, they had been keeping up to 450 euros.
Parship Is Not “Germany’s Largest Dating Agency”, the Court Ruled
RNZ – Nov 8 – Parship described itself as Germany's largest online dating service which was disliked by LoveScout24, Parship's biggest competitor in Germany. LoveScout24 ended up suing Parship for false advertising statements. This week, The Higher Regional Court Munich ruled in favor or LoveScout24. So who is at the top? According to the study "Der Deutsche Online-Dating-Markt 2017/2018", both sites have ~10M users each. Parship was founded in 2001 and has been part of the TV group ProSiebenSat.1 together with its smaller sister site Elite-Partner for two years. Parship employs 230 people and generated ~120M Eur in revenue in 2017. LoveScout24 does not want to disclose its revenues.
Wake-up Call, eHarmony Sold For A Song
OPW – Oct 30 – ProSiebenSat.1 bought eHarmony for $85 million. A real deal. They'll run on a common platform in the future. eHarmony will do roughly $90m revenues, and $0 profit in 2018. Customer lifetime value for eHarmony is $200, whereas Parship is at $570. More info here. Brand recognition for eHarmony stands above Tinder and on par with the likes of Instagram and American Airlines.
See full article at the Courtland Brooks blog.
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This post also appears on InternetDatingInvestments.
Post by Mark Brooks, CEO IDEA
