Dating Services

The bad news just keeps coming for Ashley Madison.

The adultery dating site was hacked last month by a group calling itself The Impact Team. At the time of the security breach, The Impact Team threatened to release customer records online if Ashley Madison was not shut down.

Avid Life Media (ALM), which runs Ashley Madison and other dating sites, did not back down and the hackers made good on their threat. More than 30 million email addresses and credit card numbers have been exposed, including those of notable figures in entertainment and politics.

In the wake of the leak, things have only gotten worse for Ashley Madison. There are reports of suicides that may be tied to the hacking scandal. Avid Life Media is offering a $500,000 reward to anyone with info that leads to the arrest of the hackers. The company is also facing a $760 million class action lawsuit over the data hack.

Eliot Shore, a widower from Ottawa, is the plaintiff in the suit filed this week in Ontario against Avid Life Media and Avid Life Dating, a subsidiary that runs Ashley Madison. The legal action alleges that the privacy of thousands of Canadians was breached when the hackers infiltrated Ashley Madison.

"Numerous former users of AshleyMadison.com have approached the law firms to inquire about their privacy rights under Canadian law," the law firms Charney Lawyers and Sutts, Strosberg LLP said in a statement. "They are outraged that AshleyMadison.com failed to protect its users' information. In many cases, the users paid an additional fee for the website to remove all of their user data, only to discover that the information was left intact and exposed."

Lawyer Ted Charney told VICE News that around 100 people have expressed interest in joining the class action so far, noting that anyone who registers will remain anonymous.

It will be up to a court to decide whether Ashley Madison did enough to protect its customers. David Fraser, a Halifax-based internet, technology, and privacy lawyer, thinks the class action faces “a bit of a challenge.” He says the Ashley Madison terms of service are "decidedly consumer unfriendly" and "completely covered their butt."

There may even be a question over whether this can be a class action at all. Ashley Madison's terms preclude customers from filing such suits, but consumer protection legislation in Ontario protects the right to do so.

Either way, it won't be the end of the issue for Ashley Madison. The Associated Press reported that another lawsuit seeking class action status was filed in the US days after the hack became public.

A recent article in Vanity Fair made the argument that apps like Tinder have ruined dating. Reporter Nancy Jo Sales interviewed single twenty-somethings to get their impressions of online dating, and it wasn’t pretty. They admit that “Tinder sucks” and yet they still keep swiping for lack of a better way to date.

Part of the problem, she argues, is that people have a hook-up mentality with dating apps, and men especially. They meet girls to have sex under the guise of pretending to date them, and women have been burned more than once – making them skeptical that any guy wants a relationship.

This argument isn’t a new one. But the reporter feels that dating apps are the real problem – the technology, not the people using them. Let me be more precise: dating apps make it easier than ever to meet new people, providing a way for those who are averse to commitment to do a date-and-dump.

The problem I see with this argument is that it assumes technology is the problem. If we ditched dating apps and online dating in general and went back to an “easier time” – say 1995 – when dating was supposedly alive and well, and all single people were looking for long-term romance. But this just wasn’t the case. In fact, people would hook up and avoid commitment with relative ease – they just did it in person at bars and clubs, rather than through a dating app. Maybe their choices were limited, but the behavior wasn’t much better.

Remember The Rules – dating advice lexicon of that decade? It centered around dealing with men who had commitment issues, basically teaching women how to use their sexuality and femininity to get what they wanted – a relationship.

We’ve come a lot further in our relationship progress in my opinion, partly in thanks to online dating. Dating apps have helped make online dating mainstream. They have allowed shy types to interact more easily with new people. And yes – while some people do use them for hooking up, many others are looking for real love.

Dating takes time. It takes meeting a lot of people before a connection happens. That is the nature of dating – and with a dating app, the haystack is considerably bigger when you are just trying to find that one needle. So it will take you that much longer.

Instead of getting discouraged and giving up dating apps and online dating altogether, it’s time for a different approach. Let’s embrace online dating. Be truthful about what you want so you don’t waste someone else’s time. And most importantly, be respectful to your dates and you’ll find yourself meeting people who will respect you in return.

Spark Networks, owner of a handful of niche dating sites like ChristianMingle.com, JDate.com, and BlackSingles.com, has released financial results for the second quarter ended June 30, 2015.

The company has good news to report, primarily centered around attempts to turnaround business after growth stalled for ChristainMingle and JDate. Highlights include:

• Significant, double-digit improvement in win-back rates with key cohorts
• Double-digit improvement on ChristianMingle TV spend efficiency
• New communication platform driving increased user engagement
• Subscriber base stabilized on both JDate and ChristianMingle in July versus June
• Reiterating commitment to subscriber growth in Q4

Chief Executive Officer Michael Egan stated, "We are pleased to have made considerable progress toward transforming our business during the second quarter, and remain on track to return to sequential subscriber growth across both JDate and ChristianMingle by Q4.”

The expense reduction and improved efficiency program Spark Networks announced in 2014 is showing signs of success so far. Excluding direct marketing expenses, cost and expenses in the second quarter of 2015 were $7.1 million, a decrease of 20% compared to the year ago period. Direct marketing expenses in the second quarter of 2015 were $5.3 million, a decrease of 33% compared to the year ago period and a 12% decrease compared to the prior quarter.

On the downside, revenue in the second quarter of 2015 was $12.3 million, a decrease of 22% compared to the year ago period, and a 9% decrease from the prior quarter. The decreases were primarily driven by a loss in paying subscribers, particularly for the Christian and Jewish Networks segments.

Spark Networks plans to continue its “crawl, walk, run” strategy for the remainder of 2015. A re-design and re-architecture of the company's core websites is in the works. An updated JDate experience is expected in early Q4, followed by an updated ChristianMingle experience in the latter part of that quarter.

Other product improvements are in the works concurrently. An upgraded communication platform has dramatically increased users' interactions, and improved mobile offerings have also seen a positive response.

In addition to improving the product, Spark Networks is working hard to improve its marketing strategy. Changes have been made to the customer acquisition and retention programs with good results. The company has seen in excess of 10% efficiency gains with their ChristianMingle television marketing spend, and July 2015 generated more initial registrations on JDate than any month since the first quarter of 2014.

"It is important to note that this is just the start,” stated Michael Egan. “As we roll out new and refreshed products, and continue to enhance our operational capabilities, we expect to drive continued improvements in customer growth and retention.”

For more on Spark Networks 2 most popular dating services you can read our Christian Mingle review and our JDate review.

MeetMe is a smaller player in the social networking space, but it has undertaken a number of initiatives to boost its customer base. Looking at the company's financial results for the second quarter of 2015, they appear to be paying off.

Highlights of Q2 include:

• Mobile revenue was $8.3 million, up 47% from the second quarter of 2014
• Mobile revenue represented 75% of total revenue, the highest in MeetMe's history
• Total revenue was $11.1 million, up 4% from the second quarter of 2014
• Cash and Cash Equivalents totaled $16.2 million at June 30, 2015
• Net income was $1.2 million compared to a net loss of $1.4 million for the second quarter of 2014

We're halfway through 2015 and IAC has good news to share. The company's profit in Q2 2015 exceeded expectations, thanks in large part to the overwhelming success of the paid version of its mobile app Tinder.

Match Group, the star of the conglomerate, has driven consistently strong results for the last few quarters, and this one has been particularly momentous. IAC announced its intent to pursue an initial public offering of less than 20% of the common stock of the Match Group. The IPO is expected to be completed during the fourth quarter of 2015.

“The IPO positions The Match Group for continued success with an independent currency, and allows us to focus our attention and capital on growing the rest of IAC’s assets,” said IAC CEO Joey Levin in a statement.

The Match Group also announced plans to purchase PlentyOfFish for $575 million on July 14, 2015. The transaction is expected to close early in the fourth quarter of 2015.

The paid version of Tinder, launched in March, has garnered good responses from users, despite concerns from many that the model would fail.

"Monetization continues to perform at or above our expectations on key metrics like renewal, conversion and resubscription rates,” said Match Group Chairman Greg Blatt. “We’ve seen no discernible negative correlation between monetization and growth."

IAC reported that the number of paid subscribers for its dating services grew 18% to 4.1 million in the second quarter ended June 30. Revenue at Match Group, which accounts for about a third of total revenue, rose 19%.

Outside of IAC's dating businesses, the company has other successes to report. Within Search & Applications, Applications queries increased 8% driven by 20% B2C growth. B2C revenue increased 18% versus prior year. In the Media segment, Vimeo grew paid subscribers 25% to nearly 630,000. In the eCommerce segment, HomeAdvisor revenue grew 26%.

On the downside, Websites revenue decreased 20% due primarily to a decline in revenue at Ask.com and certain legacy businesses. Applications revenue decreased 2% due to lower revenue in B2B. Revenue in Media was down 1% versus last year, despite the strong growth at Vimeo. Operating income for the match Group in the current year period was negatively impacted by a $4.2 million year-over-year increase in amortization of intangibles.

All in all, revenue growth clocked in at 2% for a total of $771.1 million. IAC's net income was $59.3 million, or 68 cents per share, compared with a net loss of $18 million, or 22 cents per share.

There is a free communication going on at eHarmony this weekend in both the United States and Canada. It starts today (Friday, Aug 14th) and runs till the end of the day on Monday (Aug 17th)

It is getting close to the end of summer and this might be the last free event before the fall. With the event, new and existing members get to communicate for no cost on the eHarmony website and app for 4 days. The dating app is available on iTunes and Google Play for both phones and tablets.

For new members all you need to do is signup for a free membership (no credit card required) and then fill out eHarmony's profile questionnaire. eHarmony is all about the matchmaking so the profile contains a number of questions that will probably take you about 30 minutes to complete. This is for your benefit as how you answer the questions determines who you will be matched with. eHarmony has over a decade worth of research going into their matchmaking algorithms and this has resulted with them matching a large number of men and women together. eHarmony's goal is to create long-term quality relationships. Free communication events at eHarmony do not include the viewing of profile photos, secure call (phone service), or skipping the guided communication process.

Our review of eHarmony contains lots of information about the dating site and app. If you would like to find out more before you signup this is a good place to start.