NEW MEDIA AGE -- Apr 30 -- The UK dating services industry is
worth an estimated £600 million a year and, according to Hitwise, there are
more than 1,300 dating sites in operation. Meanwhile, Jupiter Research predicts
the number of paying members of dating sites will reach 6 million in the next
three years, rising from 2.6 million in 2006. In the midst of such vast
anticipated growth, two of the biggest players — Meetic, which owns Dating
Direct, and IAC, owner of Match.com — have agreed to a deal.
Industry reaction to the owners of Match.com and Dating
Direct getting into bed together seems to be one of general puzzlement. IAC
plans to sell its European operations of Match.com to Meetic in return for €5
million (£4.5 million) and a 27% interest in Meetic. So why would the world's
largest dating site suddenly decide to sell its profitable European operation? Ross
Williams, co-founder of WhiteLabelDating, which powers dating sites for
publishers, sees the strategy behind the decision. "There was a clause in
the announcement that didn't make many of the headlines, but I think will tell
you the direction IAC is going in: Match has the option to buy Meetic in its
entirety in about three years. So this is kind of phase one of setting the
limits of both businesses."
There's a general feeling in the industry that the
Meetic/IAC deal will be just the first of a number of unions in a sector that
has hundreds of competitors. Markus Frind, founder and CEO of free dating site
Plenty of Fish, believes we'll see more forced marriages in the UK market.
"A lot of dating sites have been losing traffic over the last two years
and some aren't even profitable; that can't go on forever," he says. But
it seems the economic squeeze isn't impacting the bigger players in this
sector. eHarmony launched in the UK last October saw an almost 2% increase in
the number of pages people viewed on days when the Dow Jones was down 100
points or more. Match.com has also seen a 35% increase in sign-ups since the
beginning of the year.
With so many players in the market, differentiating each
dating service arguably comes down to how effectively sites match individuals.
While approaches differ slightly, no one player seems to be doing anything
radically different. Online dating service Parship claims to have been the
first in Europe to offer a scientific approach
to matchmaking, with its psychometric compatibility test, taken by more than 9
million people to date. eHarmony uses an in-depth 250-question questionnaire
based on 35 years of clinical psychology research. Tapping into this trend,
Match.com launched its work-in-progress personality test in December 2008.
Another growth opportunity for the buoyant dating market is
the 'second' generation of single people, who are gradually putting their trust
online. WhiteLabelDating, which runs Fun at Fifty, has seen a "massive
increase" in the popularity of its over-50s dating site. Launched in
October 2008, user numbers have risen each month, with March 2009 showing
visits up by 47% on the previous month.
FULL ARTICLE @ NEW MEDIA AGE
See all posts on Meetic See all posts on PlentyofFish
See all posts on Dating Direct See all posts on eHarmony
See all posts on Match.com See all posts on Parship
See all posts on WhiteLabelDating
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