Match Group’s ( MTCH Quick Quote MTCH - Free Report) Tinder has introduced an elite subscription tier, which is priced at $499 per month, and offers exclusive search and matching features. This new plan, called Tinder Select, is exclusively available to less than 1% of highly active Tinder users. For an annual cost of nearly $6,000, subscribers gain access to premium search, matching and conversation capabilities that surpass the offerings of the current paid plans. Tinder plans to gradually accept applications for Tinder Select and offers three other subscription levels, starting at just $24.99 per month. Match Group has a track record of offering expensive subscription options to specific user groups. In 2022, the company acquired The League, an exclusive dating app catering to ambitious, career-focused singles, which features a VIP plan charging $1,000 per week. This acquisition prompted MTCH to reconsider its approach to engaging high-intent users on its other applications like Tinder. The company has upcoming plans for more alterations this year, with a specific focus on attracting Gen-Z users. One of these initiatives involves a planned product update for Tinder. Shares of this Zacks Rank #3 (Hold) company have lost 0.6% year to date against the Zacks Consumer Discretionary sector’s rise of 12.6% due to a decline in subscribers in each of the last three quarters. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Tinder Faces Stiff Competition From Rival Companies
According to a Grand View Research
report, the worldwide market for online dating apps was worth $7,939.2 million in 2022 and it is expected to witness a compound annual growth rate of 7.6% from 2023 to 2030. These apps are mainly favored by young people, particularly millennials. Businesses are capitalizing on the rising use of smartphones, improved Internet connectivity and greater accessibility. The company is facing a stiff competition in the market with players like Prosiebensat.1 Media Se ( PBSFY Quick Quote PBSFY - Free Report) , Spark Networks ( LOVLY Quick Quote LOVLY - Free Report) and Bumble ( BMBL Quick Quote BMBL - Free Report) . Prosiebensat.1 Media Se-owned Elite Singles provides access to a higher-tier group of online singles. Instead of emphasizing physical attractiveness like many other top dating apps, Elite Singles prioritizes matching one individual with another whose lifestyle aligns with eachother. Many professionals turn to Elite dating platforms to locate like-minded individuals who share their success, ambition, education, intelligence and career advancement. Spark Networks-owned Zoosk distinguishes itself by employing a unique approach. It learns one individual’s preferences and tailors the recommendations accordingly. This is achieved through its matchmaking algorithm, which observes one’s interactions, such as profile likes, chat behavior, swiping patterns, search history and the overall usage of the app. This level of insight into one’s dating habits is a feature that even the most reputable dating platforms often lack. Bumble is also a premium dating app. The premium version of this app provides several benefits, such as profile boosts, extended response times, unlimited swipes and an access to admirers on the Beeline page. Bumble is an excellent choice for those seeking a brainy and less traditional dating experience, making it especially attractive to both women and men who may feel overlooked on other mainstream dating sites. Tinder's subscription has premium features like rewind feature, passport for changing the location, priority mode to enhance any profile's visibility and the capability to see who has shown interest in one individual. Tinder Premium is particularly appealing because it eliminates swipe and like restrictions, which is noteworthy considering Tinder's status as one of the most widely used paid dating apps. This is expected to boost revenue per payer (RPP) in the upcoming quarters. The Zacks Consensus Estimate for MTCH’s 2023 RPP is pegged at $17.64, indicating year-over-year growth of 9.46%. The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, indicating year-over-year growth of 6.5%.