How Dating Apps Make Money and Why It’s Changing | WSJ The Economics Of
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- čas přidán 7. 07. 2024
- The $5 billion dating app industry is largely dominated by Match Group, who owns Tinder, Hinge and Plenty of Fish. But downloads across the industry are falling, and some apps are experimenting with AI and social networking to stay competitive. What are apps like Bumble, Grindr and Muzz doing to try to differentiate themselves?
WSJ explores how these dating apps are evolving to capture wider audiences and higher revenues in a saturated market.
Chapters:
0:00 AI in dating apps
1:07 The rise of Match Group
2:01 Tinder and Hinge
3:42 Grindr and AI
6:20 Muzz and social networking
7:49 Bumble and friendship
8:36 What’s next?
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Tinder #Dating #WSJ
The only app that always wins the battle for your attention: on.wsj.com/3z9jWL8
Lesson Learned: Don’t spend your cash on dating apps
For those who are done with the current popular dating apps, what if online dating apps had no swiping mechanism? Sure, it's worse for the company's profit, but it's actually far better for the users of the app. That's what we're currently developing at BetterDates. You tell us who you are as a person, what kind of date with what kind of person you're looking for, and we find your perfect match! It's like the traditional ways of match making mixed with AI, whereas the AI does the match making for you.
Or your time. Time = money, after all.
Why spend money even though it doesn’t guarantee we can meet anyone?
For me is it worth i met my wife because of bumble and i pay premium to find her
Just don't use the internet to find dates.
This just proves what I've known for years -- the dating apps have zero incentive to create good matches, since good matches leave the dating apps since they've successfully found a match.
Lemon problem.
Maybe in the beginning they were partial honest. But once they start thinking about profit, it's becomes more and more like a scam. People need to realize this and go back to meeting people face to face.
not always: successfully leaving the dating app can create word of mouth which is free user acquisition and viral growth
@@alexvech Hinge's original mission statement did aim to be "the app that gets deleted" because it focused on fostering successful relationships that would lead users to leave the platform. It's a noble goal, but one wonders about long-term sustainability.
If everyone using Hinge found lasting relationships, the app would eventually run out of new users, right?
This potential challenge might explain their recent move into facilitating friendships. This could be a way to expand their user base and cater to a wider range of needs.
@@alexvech the bills have to get paid eventually. tech workers are not cheap.
I don't get why they are looking at people getting married and leaving the app as a "lost customer", that would be like a college looking at people graduating as a lost customer. People enter and exit the dating "market" all the time. If your product is very good at helping people reach what they want, like marriage or a long term partner, then you will capture more and more of the new people entering the market as they reach the dating age.
Because their shareholders will vote them out of the company if they use logic and reason. Infinite growth at all costs.
Lol people who graduate are literally considered lost income stream and they therefore literally have to substitute every person who graduates. It's not necessarily evil but it's the reality
@@ThisMoth but my point is that just as there are people exiting the dating market, there are also people entering the dating market. There will always be new people entering the market. Just focus on building a good product that helps people find they're looking for, and then you'll capture new people entering the market.
Get out of here with your logic and reasoning 😅. Who wants to grow inline with the national birth rate, when they can grow at a parasitic wall street quarterly expectations rate? Their stock options valuation is riding on it.
@@timoooo7320 Your way of thinking is very nice and has proven sucess, but definitely the company wants to maximize profit to secure it's future.
I think you can argue that since the product is as scalable as it is, you want to capture both new and existing users, and not just new users. They want to hit a sweetspot where the retain people for as long as possible without getting a bad enough reputation so they lose new users.
It's the fake accounts, bots, and folks not really looking for companionship, love or sex that ruined it. It's getting faker by the day.
It's the romance scammers paradise
I gave up on apps at least 5 years ago for exacly those reasons. I saw too many women treating the platforms as entertainment or soemthingto do after work and to get a quick dopamine fix. So many did not even bother responding to a well worded introduction. A simple no thanks, two words, would have been fine. They cant even be bothered to do that
@@suminshizzles6951Does any woman owe you anything? Are you entitled to a response?
@@aomeke8368 No and no.
Does being on a webiste give women the right to act like anti-social rude people?
Would you act like this in real life if i said hello? Do you just look at peole when they say hello to you in preson or do you respond?
This site is deleting comments and they want people to only see your comment of Does any women owe you anything.
The fact that George Arison from Grindr is sitting there with a straight face asking people to pay more for basic features , while the Grindr app has been a complete meltdown for Half of 2024 is truly Rich! 😂
What’s happened with it I haven’t been on it in over a year
A legit disaster
I'm ok with new features while I flake on the other flakes and purview the latest catfish batch
same with disney charging for things that used to be free
Grindr is a horrible app
My goodness, tech executives are remarkably out of touch
no, you're out of touch to think they're really helping to find the perfect match for you
@@martinxian6023did I say that I think that?
Agreed. If you're a captain of a ship, and you're completely disconnected from reality of how the engines work, then I don't have a lot of confidence that they will steer the ship effectively through market challenges.
Always been
Online dating is a waste of time
So true and money
Just get ghosted over and over. Why stick with one person when you can pull the slot machine lever and find *potentially* someone way better?
If you are an average guy is a waste of time and money. This video deliberately left out the fact that dating apps business model is designed to profit off lonely men by hiding them in the algorithm and forcing them to pay for a few potential matches.
If you’re over 27
i agree 100% next week im gonna delete all my online dating accounts been trying to find a partner online for 10 years and gotten nothin 0 dates 0 partners
Wait till the sex bots are released.
With AI controlled sex toys. We will never leave home again on a Friday night.
Sadly i wont be alive by the time that happens. I think i would choose them over the headaches that women can be sometimes.
@@suminshizzles6951 The bots will take time the 2D video VR stuff will be sooner. Asia will get the bots soon. Asian demographics are demanding intervention.
You'll be pleasantly surprised. The industry is moving hella fast. The sex dolls per se are getting scary good already.
@@suminshizzles6951 You only have 6 months to live? I am so sorry to hear that
A video about the dating app industry sponsored by the dating app industry. So revolutionary.
The male to female ratio is 9:1, and men don't want to pay for things that are stacked overwhelmingly against them.
If "men don't want", then how is the ration 9:1 in the first place? Did you really think the last 10% women are responsible for all their revenue?
@@Genebrissmen I’m sure are the paying customer. Since there too many options for women many of them cannot make up their mind on one man. So they still around looking for the next best thing. Even though that might never happen. I personally think men are the ones paying for their revenue. Most if not all women can find someone real fast if they made up their minds fast.
>men don't want to pay for things that are stacked overwhelmingly against them
and yet 99.99999% of their revenue probably comes from straight men
@@Genebriss It's free to sign up. I know several people who have gotten dates off of Tinder. Even if I never pay for it, I might as well try it and see if I can do the same.
it's 1:0 on grindr hehe
This video made me delete my tinder account
I deleted my tinder account long ago but I keep looking for places to talk to girls IRL but it's a sausage fest wherever I go.
I live in the suburbs of Texas
@@SlashinatorZ Go to church. There are usually women there, especially being in Texas.
@@jacobpatterson9440 you don't know what you're talking about. I've been to multiple churches recently & it's a sea of gray hair.
There were no millennials to be seen.
It was all pensioners or families with young kids.
@@SlashinatorZ Really depends on your area. Being in the suburbs you're not gonna see alot of younger folks since alot of them can't afford to live in suburbs. Especially if you're in your early to mid 20s.
@@SlashinatorZ Soup kitchens. Puppies shelters. Help!. You meet kindhearted women there.
I think the golden era of dating apps is long over. It used to be a decent way to meet people but now, much like Vegas and Disneyland, it's one big money vacuum designed to suck every last dollar from you.
Hanging out in Tinder, you will find out really quickyl that people are just looking for free dinner, free lunch and free rides.
These apps deliberately avoid showing or matching you with compatible partners bc they loose money if you do. They are trying to keep you hooked by getting close but never there.
It makes more sense though to get you matched with someone compatible and quickly. Those people then become free and good publicity to encourage others to join the dating app. There will always be new daters entering the market as there are always younger people (and some older people) joining the dating market.
They are losing money now because people are getting tired of spending years on apps with no results.
I can't wait for a video titled 'The Death of Dating Apps' to be posted soon
The best dating app is offline dating
It's not the best but it's the alternative.
I miss the early 2000s when you would go to the club/bar and you would always meet someone. Nowadays, everyone is glued to their phones even in clubs/bars with zero interaction with others.
How do I do offline dating when I live in the suburbs of Texas?
There are very few girls living here, most of the people living here are pensioners or families with young kids.
And the city planning is atrocious, everything is so spread out & there's no hangout spots to meet girls. It's all stores, gas stations & businesses here.
I also can't afford to even think about moving
Preach
Depends on where you live. No chance to meet someone here.
The retaining audience is pretty sad. Trying to string along people is just plain wrong. Playing with people's lives and faith is a new low
Facts
Since when did a corporation truly give a hoot about their users? They are there to make money for their shareholders. Not to hold your hand and make you feel good.
@@KenTheMan407 Common sense rules the day
@@suminshizzles6951 It's tough to pinpoint a company that genuinely prioritizes individuals. Fingers crossed, one day we'll witness a corporation that really puts people first!
they turned dating into a pay-to-win subscription service, no wonder they're failing
We at BetterDates are ditching the swiping mechanism and replacing it with something more natural. What if instead of swiping, you'd tell the app who you're as a person, what kind of date with what kind of person you're looking for, and the app finds your perfect match?
pay-to-maybe-possibly-win
@@betterdates That sounds exactly like every dating app right now?
The irony is...I got an ad for Hinge while watching this video.
That's not irony. It's coincidence.
Irony would be watching this video to convince yourself to never pay for the apps, only to end up purchasing a subscription because the video persuaded you into the scheme.
Same, except I got Bumble
Tinder, for me. But useless
Hetro dating is totally different from same sex dating . 😅. This report fails to talk about how on majority dating apps male users far outnumber female users. Men are starting to realize that they are companies profiting off of male loneliness and deck stack against them.
i fell into their trap. i quit and went back so many times.
spent money on subscriptions, went on dates where i was taken advantage of for a free meal.
over the years i have spent thousands of dollars. nothing to show for it.
im an idiot. i was so lonely i was not thinking correctly.
Grinder keeps people because they still mess around even if they are in a relationship
To be fair gay men are in open relationships at a much higher % than straight people
Not even that, gay / straight dating are not comparable at all. Its a genuine mistake to act like they are remotely similar. My best friend is gay and the relationship styles and way of interacting in the gay community are far more complex than hetero relations. Basically, they're more evolved in some ways that straights haven't and/or won't catch up to. There's plenty of poly people in the gay community to keep the apps going. Its not really the same for straights.
I’m done with dating apps, especially in USA! No thank you
I have learned that generally only the most toxic people are on dating apps. Most of them need therapy not a partner. There is a chance you’ll find love, but a far greater chance you will end up lonely and depressed.
My mental health has improved drastically since quitting the apps. I also attract way more people since my head isn’t down or I’m actually present and not wondering about some potential Corporate sponsored date.
Yeah, there was an adjustment period… but it was personally worth ig
Same here, i don't open my phone every 2 seconds anymore trying to swipe for a "match" ... instead i'm present, as you say. It feels good.
Just one VC talking point to another lol 😂
Aren’t they selling users’ privacy for money?
what company doesn't?
@@CartwheelPig Craigslist
Absolutely
5:58 grindr is not good at solving loneliness, it adds to it
It's basically paying for unlimited amount of people to reject you.
It's a doomed business model, if you're successful your customers leave. They should transition into a more sustainable longer term model, like a focus on dating or match making. They could help couples decide on dating locations or activities, like a real dating app. That should have some use even after marriage. They could help couples set up their single friends.
I think its the opposite. There will always be single people who search for a partner. No matter how good those apps are. And more importantly there will always be new young costumers who become 18. They could loose the couples that they helped get together and get new young customers.
Your long term idea is great
@@dominik9137 the problem is that those single people aren't using the apps as there has been a shift away from dating apps. It's also much easier to retain customers than acquire new ones.
Not with declining population
@@suloheart overall population is growing. And declining numbers are so small that It doesn't matter over the next 10 years
Ironically, dating apps are incentivized to keep people lonely, because that means they'll keep using the app
That's what everybody doesn't get! I ask how to get dates while living in the Texas suburbs but people keep saying do online dating!
This is why I don’t use dating apps. Way better to meet folks at events and conferences. As well as meetups.
👍.. people are spiritual beings, one way or another. Vibes and gut feelings along with body language / facial expressions/ vocal response tones/ behaviors && real Looks is safe pre screening.
Meetups are sooo incredibly predatory for women
@@catcat2607 LOL poor women. I feel so bad for them. All the attention and choices they have it makes me sad.
@@jerrynadler2883 if you’re offended by what I said you’re the predator, honey
@@catcat2607 not offended AT ALL. just pointing out how asinine your comment is.
Gay "dating" apps like Grindr and Scruff now charge for basic features that were free for years, but they also have fewer avtive users. I'm not sure how they want to keep people on the platform. Imagine Facebook suddenly asking you to pay to post photos on your profile, hoping that it will keep you there...
I think anything digital should be treated as the alternative options, in-person interaction is the quickest, most realistic way to bond.
The apps don't show ppl you actually are in to. You have to pay just to see someone. The reason dating app became popular was because they were free
We at BetterDates are ditching the swiping mechanism and replacing it with something more natural. What if instead of swiping, you'd tell the app who you're as a person, what kind of date with what kind of person you're looking for, and the app finds your perfect match?
@@betterdates spamming the same comment on youtube replies certainly makes your company seem good...
Grindr should be in the category of hookups
Crazy how all this effort and work is being done to avoid fixing the real issue..the issue the apps have is that the model that helps them is the complete opposite of what users want. Men want sex and relationships..not a model that separates money from their pockets. Women want relationships and companionship..not a model where vapid interactions are the norm.
Keep your money in your pockets, gents!
I'm calling it now: in 10 years, you'll be seeing headlines saying "Gen Alpha is Killing Dating Apps"
Cant wait lol
WSJ being a mouthpiece for these predatory dating apps smh
What about LinkedIn 😅😅😅😅
i’m here for the upspeak. it’s so entertaining
As Distributist says, dating apps should limit matches, especially for women, otherwise its just spam.
This is great! I hope the apps keep developing until they become like the Baseline test from Blade Runner.
If they really wanted to make a successful dating app they would educate the users about the realities of dating, show the data the company sees of the users in real time. Maybe even ask a bunch of questions to try to build a quasi psychological profile and train a unsupervised model to try to organize closely linked users and show the users why the algorithm thinks they are a closer match.
Or if you want to keep up with hot or not, pay somebody at the company to tell some users why their profile is trash if it has no description or something. While having a mandatory inactive period that increases with time for users that don't either unmatch or respond to their matches after a few days.
So in a nutshell, dating apps are really going for that cyberpunk dystopia experience
before watching a full video, graphic is really cute ❤
the way the Grindr app is almost nonfunctional whether you pay for it or not….
Somehow Grindr's CEO looks exactly like how I imagine him to be
Yeaaaaah, I don't foresee me using dating apps again. I have never retained contact with anyone on dating apps...attention seeking and egotistical personalities, no thank you.
i had a good stint on Tinder as a guy. like you said, dating apps are a playground for people like me (antisocial/sociopath). ive catfished and manipulated my way into sex 10 times at least. i also ghost without remorse. im neither tall nor wealthy. i AM the type of person that women on dating apps complain about(apart from creepy guys)
there are two types of men who perform well on dating apps-
1. tall, attractive, wealthy or socially-connected men
2. attractive(but not fully there) sociopaths, manipulators, bold faced liars
i have a friend who is very sentimental and conscientous. good looking but he probably sends heartfelt first messages in the queens english. then gets surprised when the "privileged wealthy socialite"(easy to fake) catches better fish by rapid firing soulless first messages calculated to hit a certain emotion. goobers who are "nice" and good-hearted should stay off dating apps these people will end up jaded
@@hwfq34fajw9foiffawdiufhuaiwfhw Karma will get you in the end. I don't mess with people's emotions or manipulate for that reason alone.
Nationalize dating apps.
The smartest thing right for dating companies is to incorporate "AI" and ways that by having thousands of fake accounts run by AI to lure and woo these individuals. Just have the AI set a boundary where it pursues and keeps a person around enough but never actually meet them without them knowing that the entire month or three was spent talking to an AI. Classic money making coming soon
It can only work for a time.
Fantastic breakdown of how dating apps are shifting their revenue models! The analysis of premium features and subscription models was particularly eye-opening. I'd love to hear more about how these changes affect user retention and overall satisfaction. Are there any long-term implications for the dating landscape as more users might feel pressured to pay for better services? Keep up the great work in uncovering these trends!
If dating were a game then dating apps are pay to win
Ironically, success for a dating app user means deleting the app. That means dating apps are incentivized to keep people out of long-term relationships, because they'll stay a customer. Hinge, for example, sections off your most likely matches into a pool of five, and only lets you send a Rose (which you have to pay for) to one of them
So why does everybody think dating apps are the best thing ever and keep recommending them to me?
@@SlashinatorZ A lot of people believe it's the only way to meet people these days. As dating apps have become more and more successful, it's more and more difficult to meet people in person because people are no longer looking for spontaneous in-person interactions to be able to meet their significant other. Plus, dating apps offer you infinite choice-you can see everyone in your area from the comfort of your own home. At this point, most people in relationships have met on dating apps. And even though they're not always conducive to long-term relationships, you'll find enough casual hookups to keep you satisfied. Most people eventually find the one, it's just a lot harder to find them than it otherwise would be in-person
@@SuperMustache555 well the main reason it's hard to meet people these days is because cities are being built for cars instead of people.
I live in the Texas suburbs & it's horribly spread out, horribly planned, jammed with traffic & lacks beauty.
@@SlashinatorZ Agreed. With a lack of third spaces, there are very few places to naturally meet other people. Hence, dating apps
These features seem like things that their existing users will like, but I kind of hate how all of these apps fundamentally work, and none of the stuff talked about here would change my mind. To expand to new audiences, they'd have to do something totally different.
We at BetterDates are ditching the swiping mechanism and replacing it with something more natural. What if instead of swiping, you'd tell the app who you're as a person, what kind of date with what kind of person you're looking for, and the app finds your perfect match?
Since when is Grindr a “dating” app???
The guy described our data and “private” conversation in dating apps as treasure trove, that was very unnerving. it says something about the tech industry that you can say that like it’s nothing
This is giving me Ashley Madison vibes
This is fascinating to know! Very interesting watch!
Emotions are always got naturally.The dating apps are fantacies but not nautural phenomenon for human relationships.
The grindr CEO is like "don't experience life, I do everything: go to that restaurant, play that music, chat with my AI" and at the same time "we want to solve loneliness"
i just hate the fact that you should pay more so your profile can be ‚more seen‘ or being in ‚queue‘ for the line.
Yeah, what turned me against using dating apps and continues to turn me off of dating apps are the fake profiles that 'messaged me'. Every time I consider getting back on a dating app, I remember those fake profiles giving me hope and then taking it away...
lol... very good ad you got here
Super fascinating
As comedians said,
6'3" =5'8"
250lbs = 35 0lbs😂
So i gave up, or basically never want to try 😂
I volunteer at museums instead, get to explore events for free, maybe have an interesting conversation. Otherwise, i just travel the world 🌍
Are you a guy or a chick?
@@alexeykulikov2739Who cares? They sound like a catch either way
You must be filthy rich. I'm dirt poor & can't afford anything outside of bare essentials.
Me finding love on Grindr ❤❤
Calling Grindr a "dating app" is quite humorous.
It's a joke to say each app is used to find something different. That has informally become the sentiment but nothing indicates that. It's literally the same creeps on all the apps. Nothing stops the Tinder user from downloading Hinge.
The future for this apps seems like a dystopian movie.
I would like to let anyone who is confused know Grindr is not a dating app!
Isn't it a dating app for gay men?
@@grod805 technically it is but truthfully it’s rarely used like that it’s mostly used for fun 😉 if you know what I mean
@@grod805 its a social network
if you have a good eye-catching photos, neat clothes, put some fake degree from reputable university, believe me everyone will right swipe you. It's so materialistic. Don't put money on dating apps unless you're looking for casual or one night. And also beware of those sexual predators.
Just admit they are really addicted to the algorithm.
This is the perfect time, I'm working on a dating app myself and the industry is about to change.
When online dating started it was great.
Now it is a terrible deal for men.
Match Group owns Grindr!?
How come Grindr sucks so bad!?
The app barely functions!!
And it is so overpriced
7:55 what? lol
I met my bf off of Hinge and we will be moving in together soon! It has benefited me and I don't think I would have ever met him offline because we hang out in two different crowds. However, I think that the algorithm plays a big part on who is getting picked based off of physical features that is deemed more beautiful. Its mostly men on those apps and not a lot of women. Also, some people you meet aren't the best quality. So it depends on the user who they go about dating in a strategic way. Dating apps shouldn't be ruled out completely.
I think the issue is that you are just one person and one exception. The overall stats show that dating apps are not very successful at matching people or putting people into long-term relationships.
Also I would be leery meeting someone off an app as what is to stop them from continuing to go on the app and look or sneak around. I think dating apps are sort of bad overall and not very healthy relationships, but to each their own.
So you paying to get a match but they are stopping you from getting one. Basically they are stealing from you
Anyone else get the impression that, other than Muzz, the CEO’s seem to be scrambling and just using trendy words instead of actually thinking about what the users want? This video basically told me not to invest in any of their apps. (As if I was an investor lol)
Oh totally, 100%. I deleted mine last New Year's and after watching this feel like i made the right decision. Its not like i was getting accurate matches anyways. These things aren't rocket science either, they could have decent matchmaking filters (height, age, race, weight, skin color, religion, etc..) but refuse to properly implement them even though a lot of those things are well defined preferences for most people when it comes to dating. Its incredibly stupid, and obvious, but of course that wouldn't allow them to pull all the in app purchase BS they do now.
all waste of time and money
Intriguing info, didn't know dating apps 💰 this much!
I am 25 and have vowed to never again use them.
I love it how the article barely mentions the data collection done by these companies. We should all just get back out of our homes and start talking to people in reality 😙
If you want your country single then make them pay to communicate lol
Idk grindr as a hook up app works really well.. just not for dating
What's the next big thing for meeting people online? I'd pay a little to weed out bots but good ones don't even exist after extensive "research".
Dating Apps are for suckers because the true and honest profiles and photos are the few !
Any advice for how to meet girls while living deep in the suburbs of Texas?
Grindr is garbage. I live in San Diego, CA & see the same 6 profiles for months, unless I pay for a subscription. 😑
they even detect if you have whats app on your profile or on your profile pic
This felt like commercial for dating app
Dating apps saved me a lot of money, it made dating such a miserable experience I stopped dating entirely.
Bravo Dating App! Bravo!
"Obviously we want to help people not be lonely, first and foremost."
Stop the cap. Profit margins are first and foremost, always.
Why don't the dating apps then offer wedding planning services to keep their successful matches engaged (has no pun intended) with their app longer?
Someone finally said it
Sooo, Grindr watched HER and said, that’s going to be our goal business model?
@WSJ you guys need to make a correction here. Bumble is no longer women making the first move. Earlier, women were forced to make a first move before any conversation started. With their new feature of opening moves, the men are making the first move. So, bumble really needs to stop with the scam marketing of woman making the first move because that is no longer the case.
Never spend some on them 😔
4:47 If you said this 2 years prior this would have been blockchain...