Jewish

There’s no doubt about it: JDate is a big name in the world of online dating, and when it wants something, it will go to great lengths to get it. And recently, its parent company Spark Networks decided that it wanted popular dating app JSwipe, owned by Smooch Labs. The two companies struck a deal in late October, and now JSwipe is one of the dating properties of Spark Networks, along with dating sites Christian Mingle and Black Singles in addition to JDate.

JSwipe, which launched in April of 2014, has grown rapidly, with over 450,000 downloads worldwide and over 40 million messages between users. The dating app was definitely posing some competition to JDate, and attracting a younger user base who prefer apps to the traditional dating websites. This made the company an attractive target for Spark Networks, JDate’s owner.

In fact, JSwipe and JDate have had a tumultuous dating history, so to speak. Earlier this year, Forbes broke the story that JDate was suing JSwipe for copyright infringement because JSwipe was using the trademark “J” in the name of their app. In the lawsuit, JDate also claimed it owned the patent on software that “confidentially determines matches and notifies users of mutual matches in feelings and interests,” which would ultimately interfere with all dating apps using this technology (in other words, all dating apps).

JSwipe at first fought back, going to the press with the story of the lawsuit and calling out JDate for trying to shut the app down. JSwipe also started an IndieGoGo fundraising campaign to help them fight the lawsuit against JDate, assumingly because they didn’t have the funds to fight on their own. As it turns out, either the company ran out of money, or JDate put forth a really compelling offer, which Spark Networks said they would reveal later in the company’s 4^th quarter financial statements.

The lawsuit has been dropped and Sparks Networks put out a press release, praising the new relationship between JDate and JSwipe. Michael Egan, Chief Executive Officer of Spark Networks, stated in the release, “We’re very excited to welcome the Smooch Labs team into Spark.  They’ve created a fantastic mobile application that helps young Jews meet and form meaningful relationships, and together with JDate, our leading Jewish focused dating platform, Spark is now able to significantly build on its mission to strengthen the Jewish community through dating and marriage.” David Yarus, founder of JSwipe had equally glowing statements about the union.

While JSwipe remains free to download right now, Sparks Networks has promised that new paid premium services will be rolled out in the near future. For more information on JDate you can read our review of JDate.

Late last year, a lawsuit was discreetly filed by Spark’s popular niche dating website JDate against dating app JSwipe. According to Forbes who broke the story, JDate claimed that JSwipe was infringing on the company’s trademark “J” by using it in the name of their app.

JDate isn’t the only Jewish online dating website that caters to the Jewish community and uses the letter “J” in its offerings. There is also JCrush, JWed, JPeopleMeet, Jewish Café, and Jewcier to name a few. In fact, it seems difficult to name a niche dating app catering to the Jewish community without using the letter J. But there is more to the story, which potentially puts all online dating sites and apps in danger of patent infringement.

In the lawsuit, JDate also claims it owns the patent on software that “confidentially determines matches and notifies users of mutual matches in feelings and interests.” JSwipe is similar in its process to Tinder, which also notifies users when matches swipe right on their picture. This is in violation of JDate’s patent.

Why then has JDate not sued other websites or dating apps, since this is such a broad definition of matching that almost every dating app and website uses? Notifying users of potential matches is the bread and butter of online dating. Why not go after an app like Tinder?

The key might lie in the competition JSwipe presents, especially if it is gaining market share in the niche online dating space. According to the Forbes writer who broke the story, JSwipe’s founder David Yarus confidentially confessed the lawsuit to him, though he is forbidden from discussing details. Instead of accepting JDate’s acquisition offer (which he considered too low), he decided to fight the lawsuit rather than sell. (For all you fans of Silicon Valley on HBO, this sounds vaguely similar to Pied Piper’s plight as an up-and-comer in the tech world.)

But JDate might have a case against JSwipe. According to Forbe’s research into intellectual property law, the language used in JDate’s patent was registered in 1999, and it is broad – broad enough (as mentioned earlier) to cover most dating websites and apps on the market today – so they could essentially claim IP infringement over any other company in the space. According to analysts, this might be a move by JDate to acquire JSwipe for a steal. Chances are if they tried to sue Match or Tinder, those companies' lawyers would be able to fight and win. JSwipe is too small a player.

Using the letter “J” in a dating app or website is apparently less clear-cut in legal terms. JDate would have to find evidence that users confuse Jswipe with JDate, which means asking users to testify that they thought Jswipe was part of JDate, or somehow affiliated, which would be trickier and more time-consuming.

JSwipe is fighting back. They have set up a crowdfunding website and asked for Jewish lawyers to take them on pro bono. 

For more on the Spark Networks dating site, you can read our review of JDate.

Spark Networks, owner of many special-interest online personals sites including ChristianMingle.com, JDate.com, and BlackSingles.com, has reported financial results for the third quarter ending on September 30, 2014.

It was a time of major transitions for the company. The majority of the Board was removed in July. The new Board was primarily focused on right-sizing the corporate cost structure and improving marketing efficiency, two goals which were, according to Executive Chairman Michael McConnell, largely accomplished. “Improved marketing efficiency at ChristianMingle drove subscriber acquisition costs ('SAC') in September that were less than subscriber lifetime value ('LTV') for the first time since January 2012,” he reports.

On the numbers front, Spark Networks presents the following highlights:

• Contribution of $9.0 million, highest since Q1 2009
• Adjusted EBITDA of $2.5 million, highest since Q1 2010
• Average paying subscribers of 257,679, a sequential decline of 6%
• Revenue of $15.0 million, a decrease of 14% compared to the year-ago period and a 5% decrease compared to the prior quarter

As you can see, it's a mixed bag. The drop in revenue was primarily driven by a 14% decrease in average paying subscribers, reflecting a year-over-year 15% and 9% decline in average paying subscribers for the Christian and Jewish Networks segments, respectively.

On the up side, direct marketing expenses in the third quarter of 2014 were down 52% compared to the year-ago period and 24% compared to the prior quarter. Contribution in the third quarter of 2014 was $9.0 million, an increase of 90% compared to the year-ago period and a 14% increase compared to the prior quarter. In both cases, Christian Networks was the primary driver (improved marketing efficiency and a better mix within the paying subscriber base, to be more specific).

Looking forward, McConnell says the company's primary objective is to improve product functions and features across all platforms. A JDate iPhone app was recently approved and a ChristianMingle app should be on its way soon. Spark Networks is also looking to leverage its presence in Israel and outsource some other development activities in order to speed up product development.

"In summary,” says McConnell, “much has been accomplished in the last several months, but much work remains. The team has embraced our future with a sense of urgency and focus. We look forward to driving changes that create a terrific experience for our customers and support the core communities we serve."

JDate, a popular dating website for Jewish singles, has launched a new mobile app for its members.

In the past couple of years mobile apps have taken off among daters, especially with the popularity of free and easy-to-use dating apps like Tinder, so traditional dating sites have had to step up their mobile game. After all, most people have their phones with them at all times and are able to log in anytime, anywhere, as opposed to their desktops.

Desktop dating is almost a thing of the past. Since it’s much easier to access phone apps, mobile dating apps tend to be stickier for users – attracting people to check in when they are waiting in line or for a friend to meet them, or just bored. The more often people are logging in, the more attractive it is to other potential users, which is what online dating companies want.

Enter JDate’s new app, which they describe as “a robust, on-the-go experience.” The features however are pretty standard, compared to what is already available via mobile dating apps. The big difference is their loyal user base – singles looking for relationships with similarly religious people.

Some of the new features include a better snapshot of each potential match. For each profile, you can easily see information such as location, religious preference (orthodox, reform, etc.), how well matched you are (0-100%), and from the same screen, you can choose to look at profile details, chat, email, or flirt with your match.

Photo access has improved, too. From the app, you can scroll through hundreds of photos of your matches (a la Tinder), as well as upload your own either from your phone, Instagram or Facebook.

Subscribers have the ability to chat instantly with other members who are either currently browsing the app or on the site from a desktop, and can hold multiple chats at once. They also have the ability to see who has favorited them or viewed their profile, and to see who is nearby via the “Members of the Tribe” feature.

The app also includes JDate’s popular “Secret Admirer” game, where a member can anonymously show interest in another member.

Reviews on the iTunes store have been mixed. Many users are happy with the results compared to apps of other traditional dating sites like Match and eHarmony because of JDate's easy-to-navigate format, but they are frustrated by the search capabilities as well as how long it took the company to make a well-formatted app.

JDate currently has over 750,000 members worldwide. To find out more about this service you can read our JDate review.

Online dating is about to get a major shakeup. And when I say major, I really mean major. Spark Networks, which owns popular dating sites like JDate and Christian Mingle, has put itself up for sale and has at least one prospective suitor.

The big news comes on the heels of the company unexpectedly postponing its annual shareholder meeting in June, two days before it was scheduled. The move allowed Spark Networks to put its focus on the potential deal and to sidestep a board battle with its largest shareholder, Osmium. Things have been tense lately with Osmium, a San Francisco hedge fund that has been pushing for board seats over concerns that Spark has been neglecting to allocate sufficient funds for JDate while over-spending on Christian Mingle.

Spark has spent $120 million in direct marketing on Christian Mingle since 2011, which has helped grow Christian Mingle’s subscribers by almost 700 percent since 2010. Revenue is also up, from $45 million in 2008 to $70 million in 2013, but along with those efforts came dramatically increased costs as a percentage of revenue.

Meanwhile JDate, the most famous and lucrative site in the Spark Networks arsenal, looks to be going through a rough patch. According to Osmium, the Jewish dating site posted revenue of $6.1 million in the first quarter – its lowest level since 2006. Jewish subscribers have also declined to  2006 levels.

All of this is coming at the same time as big-time changes for the Spark Networks board. When the delayed annual shareholder meeting finally took place, four of the company’s six sitting directors were nixed, including Chairman and CEO Greg Liberman. The shareholders instead picked four directors nominated by – surprise! – Osmium. One of the two Spark directors who was re-elected, Thomas Stockham, resigned not long afterwards.

“The new board is eager to work alongside Spark employees with a renewed sense of urgency, accountability and focus, in order to drive increased shareholder value,” said Osmium’s founder and new Spark director John Lewis to the New York Post.

As for what’s happening with the sale of Spark Networks, everyone involved is remaining tight-lipped for now. The name of the prospective buyer has yet to be revealed, but the New York Post notes that “the world of online dating companies is small and currently dominated by Barry Diller’s IAC, which owns popular dating sites Match.com, OKCupid and Tinder.”

If anyone knows how to crack the code of online dating it’s Greg Liberman. Liberman has been president and CEO of Spark Networks since 2004, giving him more insight into the industry than almost anyone else in the biz. He spoke with The Forward in early February about the tremendous success of JDate, the Internet’s most popular Jewish dating service.

Liberman chalks the company’s success up to one simple thing: “this company was built out of a need.” And not just any need – one specific person's need. One of the founders had recently been divorced and was looking to expand his social circle of single Jewish women. Out of that quest, JDate grew organically.

Once the site had gotten its start, it set itself apart from the competition by creating a strong culturally focused community. “Religion is obviously at the core,” says Liberman, “but the majority of the members are Conservative and Reform and interested in a more culturally based identity.” The site provided a meeting place for Jewish singles who wanted to continue the traditions they were raised with, but weren't interested in a heavy emphasis on faith.

When asked how things have changed over the course of JDate’s history, Liberman nominates mobile dating as the decade’s biggest innovation. Mobile is becoming an increasingly important part of our lives, and that includes our love lives. “We saw in 2013 a 114% increase in log-ins via mobile,” Liberman says of JDate. “People are connected all the time, and for us it’s really important. I mean, it’s a huge opportunity for us to continue to drive our mission.”

Mobile isn’t the only change in store for JDate. The site announced the launch of a new marketing campaign on Valentine’s Day 2014 that further stresses the “J” half of its name. The rebranding initiative – JDate’s first – is called “Get Chosen.” Liberman hopes that it will help strengthen the Jewish community and ensure that Jewish traditions are passed on for generations to come. He calls it a “fun, living, breathing campaign” designed to “remind Jewish singles of the cultural ties, not just the religious ones, that make dating, and ultimately marrying, someone else who is Jewish so special.”

The multi-platform campaign will begin immediately across various channels, including print, digital and social. In addition to adding the tagline “Get Chosen” to the logo, JDate revealed a new homepage design for the website. The company also plans to run digital billboards in New York’s Times Square and a street sign campaign throughout Chicago. Other creative elements, including television and web videos to support the “Get Chosen” theme, will roll out later this year.