Match Group

Musicians are having to find new and more organic ways to promote their new albums, since people are discovering content in different ways outside of traditional radio. To capture new – and especially younger – fans, artists who are serious about promotion are now looking to dating apps, and finding some success.

Millennials are the largest group of consumers of music, and they also tend to be on dating apps like Tinder and Grindr. So it only makes sense that music and dating apps would eventually come together.

Some recent examples: Madonna's latest album was advertised on Grindr, a dating app for gay men, while Jason Derulo debuted a music video on Tinder. PlentyofFish was one of the first dating sites to link itself to an artist, by making an appearance in Derulo’s 2010 video for his song “Ridin Solo.” POF also worked with Lady Gaga during a U.S. tour, offering fans a chance to win tickets and backstage passes.

Other popular dating sites are linking to musicians, too - Mariah Carey premiered her music video for the single, "Infinity" via her new profile on Match.com, and DJ-producer Afrojack answered questions about love and relationships for eight hours on Match’s Twitter account to promote his new single.

The latest musician to take advantage of the wide reach of dating apps is Zedd, the Grammy-winning DJ-producer. He worked with Tinder to promote his album, "True Colors," released last month, by setting up his profile on the dating app. While Tinder users searched for dates, they would come across Zedd's promotional profile. They could swipe left or right, as with any other potential match. But instead of messaging him or setting up a date, if they swiped right, they could purchase his new album at a discounted price of $3.99 (compared to $7.99 on iTunes).

According to a recent story from Associated Press, “True Colors” debuted at No. 4 on the Billboard 200 albums chart its first week with 39,000 copies sold. While no specifics were given about how many sales were the direct result of Tinder users swiping right on Zedd’s profile, chances are the app had something to do with the album’s popular debut.

According to Tinder, eighty-five percent of its users are between the ages 18-34, and the average user spends about 11 minutes on the app each day — one of the main reasons artists are looking to work with Tinder in particular. It makes sense. Since users’ engagement with dating apps is pretty high, artists have their attention, at least for a few seconds, which is long enough to swipe right and learn more.

It’s a revolutionary time in online dating. Now your physiology will be making decisions about who you should date, instead of having to rely on your own decision-making process to swipe left and right.

The new Tinder app debuting on Apple Watch called Hands-Free Tinder, created by developers from Austin-based integrated marketing and advertising firm T3, links a person’s heart rate to their interest in potential matches. Since pulse rates quicken when you are attracted to someone, the technology tracks this and suggests that you are a match. If there’s no quickening of heart rate? Then it’s an automatic rejection.

The process is entirely automated, meaning you don’t have to do the swiping yourself. The watch app does it for you. (Which kind of takes the fun out of Tinder, doesn’t it?) By simply looking at someone’s picture, the app will determine whether to reject or accept a match, all based on the user’s heart rate.

The Apple Watch won’t be the only wearable technology getting the new Tinder app – it will also become available soon on Google Play, so Android wearables will offer Hands Free Tinder, too.

“Swiping left and right is a thing of the past,” explained the developers to the UK’s Daily Mail. “After we found out that the Apple Watch could detect heart rate, we went to work developing hands-free Tinder. Now you can follow your heart to the right match.”

An article in Tech Times pointed out the precariousness of relying on heart rates to monitor attraction or interest in a potential date. Hands-free Tinder does not discriminate. If you are excited in that moment, whether it’s because you saw an old friend or took the first sip of a delicious drink, then your watch will right-swipe for you. The same thing goes if you are excited in a bad way, like if you witness an accident or suddenly remembered that you didn’t turn the stove off when you left the house. It will swipe right for you in these instances, too, because your heart rate goes up. So it’s important to not allow yourself to be distracted while you’re using the new app.

The smartphone helped propel online dating into the mainstream, making it easier than ever for people to choose or reject matches based mostly on a few photos. It has also encouraged our tendency toward laziness, especially when it comes to dating. Instead of manually accepting or rejecting matches, the next evolution of online dating says it will be done for us. Where’s the fun in that?

For more information on this dating app you can go ahead and read our review of Tinder.

Curious to find out if that’s really Leo DiCaprio or Hilary Duff using Tinder? Now, you can rest assured that either it’s a fake, or yes – your favorite celebrity is really on Tinder. (And maybe there’s a chance for a mutual swipe right...)

The latest update to Tinder brings with it a much-anticipated feature: verified profiles. But the verification in its current state doesn’t extend to all users. Specifically, Tinder verifies the authenticity of well-known people who are using the service, whom Tinder describes as “notable public figures, celebrities and athletes.” Following in the steps of Twitter, Facebook and Instagram, Tinder will now add the recognizable blue and white checkmark badge to all verified celebrity profiles.

Tinder has been known to have problems with spam bots and fake profiles in its database, which has raised concerns among many in terms of its cybersecurity and the potential for its users to be catfished. One example is the number of fake profiles set up by prostitutes, who offer prices for their services should you swipe right on their profile. Other red flags have been raised when some companies advertising their services began using fake profiles to entice customers, without Tinder's approval.

But the real concern among Tinder management was not the safety and security of every day users – it was the fact that celebrities weren’t getting many matches because nobody believed their profiles were real.

So, the new feature came about not because of complaints or requests from the general population of Tinder users, but at the request of celebrity clients using the service. As Rosette Pambakian, vice president of global communications and branding at Tinder, told The Huffington Post: “Many celebrities were telling us that no one believes it is really them on Tinder, so we launched verified profiles to authentic users who are notable public figures.”

So how does the verified profiles feature work? Celebrities can email verified@tinder.com to be considered for the badge, and Tinder will review requests on a case-by-case basis. If you're not a celebrity don’t try to submit one yourself, because for now, only notable public figures will be considered. But if you’re Heidi Klum or a single politician? That’s a different story.

So what does this mean for the average Tinder user? Not much has changed. While you won’t be able to tell if the average profile you are looking at is a real person or a scam, you will be able to tell if Brittany Spears or Lindsay Lohan shows up as your match. They will be marked verified.

To find out more about this service please read our review of Tinder.

If only all breakups ended as well as this one.

IAC/InterActiveCorp announced recently that Match.com, Tinder, OkCupid, and other dating services would become part of their own spinoff unit. The subsidiary will be called The Match Group and will be a publically traded company. Following the news, shares of IAC rose over 5%.

According to the announcement, The Match Group is likely to issue less than 20% of its common stock. The IPO is expected to be completed in the fourth quarter of this year, after which investors will be able to buy stock in the company. So far, the ticker symbol (the three-or-four letter identifications that represent companies on stock exchanges) is unknown.

The Match Group is starting out on top. IAC/InteractiveCorp is a $6 billion media conglomerate, and revenue of the new Match Group accounted for nearly one third of IAC's total revenue in the most recent quarter.

Last quarter, The Match Group reported revenues of $239.2 million, marking an increase of 13% on a year-over-year basis. Reports say Match Group’s revenues are expected to increase 18% in 2015, bringing the number to $1.24 billion.

The hope with separating the Match Group, and combining more established businesses (like Match and Meetic) with earlier stage businesses (like Tinder), is that the move will lead to significant cash flow generation and meaningful growth potential.

Or, as Chariman and Senior Executive Barry Diller colorfully put it, “I'm not a believer in simply agglomerating assets in perpetuity. I've long felt that as entities grow into size and maturity it's healthy to give them separation and independence from a mother church."

It's an exciting time for the industry, but dating services haven't always done well on Wall Street. AshleyMadison forfeited an IPO in 2011. Zoosk filed for an IPO in April 2014, but withdrew the application in May 2015. Hinge, on the other hand, skipped the IPO entirely, instead relying on raising capital from venture capitalists. In 2014, Hinge had raised $12 million.

The Match Group will also face stiff competition from other key listed players like Spark Networks and Jiayuan.com. Still, IAC believes this IPO can give new life to the Group. Estimated EBITDA for The Match Group in 2015 is $264.9 million – and that's excluding the $75 million EBITDA anticipated from Tinder alone.

A well-received IPO could not only put IAC significantly ahead of its competitors, but also serve as a litmus test for the entire dating industry.

Did you know crafty ladies love Houston, men in Seattle seek outdoor adventure, and intellectual singles flock to Washington, DC?

It's hard to put much stock in the interests section on online dating profiles. Occasionally you may connect with something, but mostly it's a lot of boring clichés (“I like traveling and hanging out with my friends”). All most of us use the interests section for is scanning for red flags and looking for microscopic signs of compatibility.

Well, it turns out those interests may serve a more important purpose. Using an interest-based algorithm, PlentyOfFish examined the dating profiles of more than 10 million singles over the age of 21 to group them into personality types. The results were released as a new research study called PlentyOfPersonality.

The research identified the top 20 personality archetypes, based on corresponding interests, of singles in 11 major American cities. The data was then broken down by city and gender to asses how differences and similarities in the personality types might impact dating habits.

The 20 personality types are: Artist, Bar Game Buff, Cultured Urbanite, Curious George, Eternal Optimist, Family First, Fast and Furious, Happy-Go-Lucky, Health Buff, Intellectual, Live Event Fan, Mainly Mainstream, Pinteresters, Romantic, Salt of the Earth, Social Butterfly, Sports Fanatic, Weekend Warrior, Well-Rounded, and Outdoor Adventurer.

Scanning the data, it's clear that some cities have greater potential for compatibility than others. Men and women in Detroit, for example, sync up on three of the four top personality types: Weekend Warriors, Eternal Optimists, and Bar Game Buffs.

On the other hand, singles in Boston may have a hard time finding their matches. Female residents are Cultured Urbanites, but most men are partying Weekend Warriors. A similar split is seen in Seattle, where men are Weekend Warriors and Outdoor Adventurers, but women fit into the quieter and more creative categories of Pinteresters and Artists.

So what we can we learn from POF's personality study?

First, don't skip over the interests section. You may be tempted to say “I dunno,” “Ask me,” “Too many to list here,” or leave it blank, but you're missing a valuable opportunity.

When you do fill it out, consider your answers carefully. Discerning visitors are using your interests, consciously or subconsciously, to construct a portrait of your personality. Make sure it's an accurate representation of who you are and make sure the statement it's making is positive.

If all else fails, perhaps it's time to pack up and move. Love could be waiting across state lines. For more on the dating service which conducted the study, you can read our Plenty of Fish review.

On Tuesday Match Group which is a subsidiary of IAC/InterActiveCorp purchased PlentyofFish Media for $575 million in cash. The deal is expected to close by the end of the year. Markus Frind which is the founder and sole owner of POF started PlentyofFish.com way back in 2003. It was a side project for him to learn a new programming language. It quickly exploded and by 2008 he was earning $10 million a year from the dating site with only a couple of employees. Early this year POF.com reach a milestone and hit 100 million users. The company also predicted it would earn $100 million for the year 2015. On its newly launch responsive mobile site POF currently reports the following statistics:

• 3.5 million singles log into POF.com daily (through the website and dating apps)
• Those same singles generate more than 9 million conversation every day
• From those conversations 1 million relationships are created every year

In the past two years I have heard several rumors about Match being interested in purchasing POF.com. I had heard around $300 million was offered at one point, but it was turned down. For a site earning $100 million in a year with no debt and it’s only real expense is it’s 75 employees that was a pretty low offer (if it is true). Obviously there was some negotiations going on which resulted in Markus walking away with over half a billion dollars. Funny enough, the general rule of thumb in purchasing a website (now these are much smaller sites [smilely: ;]]), is that it is worth about 4 years’ worth of the income it generates. I guess from using this purchase as an example, that the rule is not too far off!

The Match Group has purchased a number of dating services over the past 6 years:

• In 2014 Match purchased How About We
• In 2012 Match buys DateHookup.com
• In 2011 OkCupid was bought by Match.com for $50 Million
• In 2009 People Media was acquired for $72 Million

Combining all of these sites along with Tinder (which Match had funded pretty early on) and adding POF to the mix, this will make the Match Group the undisputed power house in dating online and on our phones for years to come. Acquiring POF will also make the Match Group’s proposed IPO that much more enticing to investors when it happens, which is most likely near the end of the year.

POF is currently a free dating site that offers a paid subscription for an upgraded membership. This upgraded membership offers a number of features like no ads, viewing extended profiles and seeing who has viewed your emails. I am curious to see if the Match Group plans any tweaks to this formula. If they change POF to a completely paid dating site like Match.com (which I highly doubt by the way), then I am sure POF users would be up in arms. I have a feeling they will leave POF.com pretty much the same for now and let it continue as is, in the same way Match Group let OkCupid continue to operate.