Memberships

Popular dating apps like Tinder, Bumble, Hinge and Grindr are trying new subscription pricing to continue to grow revenue, including premium pricing as well as discounts and short-term subscriptions for young Gen Z daters.

Dating app revenue has stalled in recent quarters, and to increase revenue and paying subscribers these companies are looking at out-of-the-box pricing. Match Group is especially motivated, as it has seen revenue drop the past few months while Bumble and Grindr are still seeing gains. Many are starting to offer premium services to highly motivated and more affluent daters, who are willing to spend $500 a month on a dating app if it means better, more curated matches.

On the other end of the spectrum, these same apps want to attract younger daters, specifically the Gen Z market. Match Group is starting to offer short-term weekly subscriptions for those singles who don’t want to commit, as well as discounted pricing to encourage young daters to pay for subscriptions, instead of just opting for the free service and paying for certain in-app features as needed.

Shares of Bumble fell 4 percent in early August after the company shared its relatively “lackluster” third-quarter revenue forecast, coupled with a sharper rise in its operating expenses, according to Reuters.

This rise in spending concerned investors, especially after Tinder’s parent company Match Group recently predicted that its third quarter revenue would be higher than analyst expectations, despite its own spend on development and marketing. The company has struggled lately with Tinder, and has been implementing new features to increase in-app revenue and expand its userbase. The company also recently announced it will be launching a high-end service for users who are willing to pay as much as $500 per month.

Bumble meanwhile shared that its operating expenses had jumped 7 percent in the second quarter with additional spend on product development and marketing.

Tinder has confirmed it is testing a new ultra-premium service priced at $500 per month, tentatively called Tinder Vault.

According to Fast Company who broke the story, Tinder Vault is offering different perks for the price point, including a 24/7 Concierge Service for those willing to pay. The details about the service are still vague, and the company said they might not offer it if there isn’t the demand, but that remains to be seen.

Tinder’s chief product officer Mark Van Ryswyk said in an interview with Fast Company that the feature is still “in its early days,” and that Tinder could even end up drastically cutting the price. There was no word on when the company plans to release the service more broadly.

India is now among the fastest-growing dating app markets worldwide, thanks to a growing young population of singles and their changing attitudes towards dating.

In terms of year-over-year growth, India emerged as the fifth largest market in dating app spending in 2022, according to a new study by data.ai Intelligence. Researchers found that Indian users spent $31 million more in 2022 than they did in 2021 despite economic factors like inflation that affect consumer spending.

Match Group, Bumble, and other major dating app companies have made a big investment in India, hoping to capitalize on this attractive market which now brings in millions of dollars in revenue each year to dating app companies.

Dating app Hinge has launched its new top tier service HingeX for $49.99 per month. The company also announced changes to its current subscription tiers to provide more offerings at new price points.

Hinge had been testing its new premium service at different price points around $60, parent company Match Group revealed on an earnings call in January, as well as revising the current subscription model. Executives and investors have seen huge growth potential in the dating app and are focusing efforts right now on Hinge and star app Tinder.

Match Group had said that it was testing the new subscription model, but few details about features were given. Now we know that subscribers who pay for HingeX will have their profiles constantly boosted to attract more matches, according to Fast Company who broke the news, and will be seen sooner than other profiles by potential matches.

The value for dating app Bumble’s stock has dropped 14 percent after the company lowered revenue forecasts for the fourth quarter, and Gen Z users have increasingly stopped renewing their subscriptions.

Bumble expects Q4 revenue to be between $232 million and $237 million according to Reuters. This is lower than Wall Street projections of $254.5 million, according to Refinitiv data. Still, the company pointed out that paying users for the third quarter increased to 3.3 million from 2.9 million last year, a sign of growth despite the downturn.

According to Motley Fool, on a call with investors, Bumble CEO Whitney Wolfe Herd said that the economic slowdown affected spending for “certain segments of its user base,” notably younger daters, who were not renewing subscriptions at the normal rate. Motley Fool also noted that shares had already fallen 38 percent this year as investors fled dating and tech stocks in general, following a surge of interest and rising subscriptions in dating apps during pandemic lockdowns.