IAC Proves Its Dating Industry Dominance With Tinder CEO Ouster
By LESLIE KAUFMAN and MIKE ISAAC SEPT. But now things are getting really serious. The media conglomerate, whose chairman is Barry Dillerhas been snatching up dating sites for the last several years, increasing its bet on the fertile terrain combining technology and romance, where many couples are meeting these days. Through its two giant dating sites, Match. Then in March, IAC increased its majority stake in Tindera makds app that is ground zero for the hookup culture, paying an undisclosed amount that is believed to have valued Tinder in the billions.
IAC is organized in an unusual way. Less a traditional media company than a conjoined set of loosely affiliated Internet outfits, IAC also owns companies in the search, e-commerce, video and media industries. But over the last decade, it onljne systematically bought its way into the dating market, which Mr. Diller saw as a lucrative opportunity for an online business long before many others.
Movs of the end of last year, IAC said it hosted 30 million active users among its dating properties, 3. They have been pushing for IAC to spin off the Match Group as soon as possible, probably because they think the popularity of dating sites lac about to crest. The online dating industry is trying to navigate a delicate balance. On one hand, it has never had stronger market penetration in the United States or abroad. However, it is under intense as free mobile services pop up and make it more challenging to generate a profit.
About one of every 10 American adults has used a dating website or iac makes moves in online dating app, according to a report from Pew Research. And, according to a study published in the Proceedings of the National Academy of Sciences last year, about 35 percent of couples married from to met online.
A look at the market share held by the top dating apps, according to January U. Yet those big numbers belie the datin concerns, industry experts say. Dating through mobile is exploding and now accounts for roughly 27 percent of the dating site services, but it has remained a persistently weak iac makes moves in online dating for much of the industry.
Neil Clark Warren, chief executive and co-founder of eHarmonysaid that his site had tripled its mobile audience in recent years and that it mives produced 52 percent of its business, yet he acknowledges it has been a challenge for the company financially. Another problem is that the market has become crowded. While such websites often have short life spans, they increasingly pull singles away from iac makes moves in online dating larger, more general sites.
Moreover, increased competition for subscribers has increased advertising costs for most sites. Most of the new sites are free, eschewing a subscription model to instead build a base of users. And for many social media users, sites like Facebook and Instagram serve as de facto dating sites, eliminating the iac makes moves in online dating to pay for dating services. Nevertheless, the Match Group chairman, Gregory R. Yet, IAC has acknowledged that advertising will be part of any formula for Tinder to make significant money; iac makes moves in online dating so, other brands have found only limited success with ads.
Yagan is not worried. He points out that Tinder is the first dating site to crack the top five in the last decade. As far as the increased competition, with a steady stream of iaf players like HingeMr. Yagan said there was still plenty of business to go around. Unlike a car, the majority of online daters use multiple products, so you want to have a portfolio — a multibranded approach. An article on Monday about increased competition in the online dating business referred incorrectly to the amount of money the Match Group chairman, Gregory R.
Blatt, said one dating site, Tinder, could generate. He is its chairman, not its owner. A version of this article appears in print on September 15,on Page B1 of the New York edition with the headline: Order Reprints Today's Paper Subscribe. Tell us what you think. Please upgrade your browser. Sections Home Search Skip to content Skip to navigation View mobile version. The New York Times window. Media IAC, Owner of Match and Tinder, Makes Moves in Online Dating.
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