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But the entire Match Group, by comparison, earned revenue of 8 million last year, about one-quarter of IAC’s billion revenue in 2013. He points out that Tinder is the first dating site to crack the top five in the last decade.
Yet, IAC has acknowledged that advertising will be part of any formula for Tinder to make significant money; even so, other brands have found only limited success with ads. As far as the increased competition, with a steady stream of new players like Hinge, Mr.
Yet those big numbers belie the underlying concerns, industry experts say.
“How do we get those people to subscribe after they get on and register? Another problem is that the market has become crowded.Tinder, IAC’s fast-growing app, has been hesitant to charge members for anything because it does not want to stunt growth. Blatt, has told investors the company will soon find a way to benefit from the app’s popularity.In a conference call with analysts in July, he said the company assumed Tinder could eventually earn million a year in earnings before interest, taxes, depreciation and amortization.Moreover, increased competition for subscribers has increased advertising costs for most sites.Most of the new sites are free, eschewing a subscription model to instead build a base of users.
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Diller saw as a lucrative opportunity for an online business long before many others.