THESTREET - Apr 29 - According to analysts Tinder Plus should push IAC's stock past $80 and make up for declines in other businesses. "This is a game of critical mass, and they have it," said Mark Brooks, CEO of online-dating consultancy Courtland Brooks. "Tinder could generate ~$12M per quarter," says Barclays analyst Chris Merwin. Brooks believes Tinder should bring in more money from subscriptions than from ads. IAC doesn't release Tinder Plus subscriber figures, but it said subscriptions in its dating business grew 16% in Q1 while revenue increased 2%. Some estimates peg Tinder users at ~24M. The app has been downloaded ~40M times. Brooks said the pay service should by nature hold down some growth. "The reason they have started charging this early is that they can't let mobile dating become entirely free. If the free category as a whole gets too big, it kills market for them. It is strategically critical that they don't let mobile dating be too free. They needed to at some point start branding. It's the brand leader that will win this game," Brooks said.
by Eric Kelsey
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