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It's the New Year
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and for some that means resolutions to
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slash command line to subscribe today. That's
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the verge dot com slash command line.
1:09
Luxmi, I want to tell you about this guy.
1:12
A dating app guy? Sort of.
1:14
He's been using dating apps for nearly a decade.
1:17
But a few years ago, he discovered something
1:19
about them that made him feel a little cheated.
1:22
His name is Eve
1:24
Gilbert. He's an attorney in Midtown
1:26
Manhattan. It's sick that you're
1:28
a lawyer. Oh, thank you.
1:30
Oh.
1:30
does surprise a lot of people. When
1:33
I met him, he was wearing these heart
1:35
shaped flolita glasses and
1:37
leather pants. You're definitely the most
1:39
stylish slaver that I've come across.
1:41
Thank you. That is what I aim for. And
1:43
when it comes to the ops, he's seen it all.
1:45
He told me he started using them when he was pretty
1:48
young. Like
1:51
most of our gay kids, I was using
1:53
like Grindr when I first started because
1:55
that's like really the only way to
1:57
like me other gay people.
1:59
Grindr was enough when he was living in the
2:01
suburbs. But he moved to New York in
2:04
twenty sixteen and had a new city,
2:06
new me moment. And so we decided to
2:08
try some new dating apps. OkCupid
2:11
was
2:11
first. It had these quirky, queer
2:13
friendly ads on the subway that caught his eye.
2:15
I do fall for ads very easily. Then
2:18
he got on Tinder. When I started,
2:21
Tinder was like, oh, this is the fancy
2:23
one. This is the one that you go to to
2:25
meet like a more long term partner.
2:28
At the time, Tinder was already
2:30
building a reputation as a hookup app.
2:32
But when Gilbert compared it to
2:34
Grindr, it actually felt more serious.
2:37
So he was on these apps for years and
2:39
went on so many bad dates, you know,
2:41
he wanted to be done. I
2:43
mean dating burnout is
2:44
real. Totally. And then
2:47
in twenty eighteen, he thought he saw the
2:49
light at the end of the tunnel. Hinge.
2:51
It was supposed to have this sophisticated algorithm,
2:54
you know, high quality matches, the
2:56
app pitched itself as designed
2:59
to be deleted.
3:00
And then I think the first five or
3:02
six profiles I've seen were
3:04
people I had already talked
3:05
to. And some of them had already been
3:08
on dates with. Like, the same dates
3:10
that precipitated me switching to
3:12
a new app. Okay. So
3:14
I think I know where this story is going.
3:19
Did you proceed to match with
3:21
them, or did you, like, throw your phone
3:23
away in frustration? It just
3:25
made me sit there for a bit. I was like,
3:28
This is New York. It's one of the biggest
3:30
cities in the
3:30
world. These cannot
3:33
be the only options here.
3:35
He did not throw his phone,
3:37
but he was left with a rage
3:39
induced curiosity. Okay
3:42
cupid, Tinder, Hinge, These
3:45
apps were all marketed differently. They
3:47
were supposed to provide distinct experiences.
3:51
So why did using them feel so similar?
3:54
After doing a bit of research, he realized
3:56
that all of the apps he'd been using over the
3:58
years, besides Grindr, were
4:00
under the same corporate umbrella. Honestly,
4:03
I felt kind of
4:06
like cheated in a way. It's
4:08
like, okay, Tinder has been treated me badly,
4:10
so let me try hinge. Kind
4:13
of like the same way, like, if you have a bad product,
4:16
you're like, oh, I'm gonna buy, like, that competitor's
4:18
product instead.
4:21
Dozens of dating apps and websites,
4:24
all owned by the same company. That
4:27
company is Match
4:28
Group. I'm like, how
4:31
how is this possible?
4:37
This is land of the giants. Match
4:40
Group owns nearly all of the top
4:42
dating apps in the United
4:43
Which means it
4:45
controls the way dating works
4:47
for millions of
4:48
people. That's a lot of
4:50
power for one company to hold,
4:52
and it got all of that power through a
4:54
long campaign of buying up the competition
4:57
and steering our romantic lives. It's
4:59
been a lucrative business for Match Group.
5:02
It knows our most intimate preferences
5:04
and behaviors, and match uses
5:06
that data to better sell itself.
5:09
To build new features that make more
5:11
money from our desire to connect. But
5:14
what about users? As
5:16
Match Group perfects the business model
5:18
of
5:18
dating, Are people seeing better
5:20
results? That
5:22
is a great question, Sengita. Since
5:25
I used to work at Match Group, we thought it'd be a
5:27
good idea to hear your fresh take
5:29
on Match's story. I
5:31
can't wait to hear what you find out.
5:33
Thanks, luxury. The
5:45
dot com boom in the nineties was a bit of
5:47
a wild west, and a young computer
5:49
scientist named Gary Kremman
5:51
wanted to try his luck. He
5:53
had an MBA from Stanford, but his big
5:56
business idea was pretty simple.
5:58
He bought up a bunch of catchy domain
6:00
names. Job's
6:02
dot com, housing dot com,
6:04
autos dot com. He also
6:06
owned sex dot com, and match dot
6:08
com. In nineteen ninety
6:10
five, the first version of match
6:12
dot com would have looked
6:13
familiar. I've seen old markups,
6:16
And, like, they literally look like the classified section
6:18
in the newspaper, which probably don't even
6:20
exist anymore.
6:21
That's Amaranth Tom Bray. He's
6:24
the CEO of Match Group Americas. And
6:27
that was exactly the idea. That
6:29
match and all of those other domains
6:31
would function as a sort of online classified
6:34
space. Cremen created
6:36
a company called Electric Classifieds
6:38
to house his domains, named
6:41
himself the CEO and set
6:43
out to conquer the digital classifieds
6:45
business. And what respectable classifieds
6:48
section didn't have personal ads?
6:50
The only thing was that personal ads
6:52
weren't always that respectable. In
6:55
the men digest, a lot
6:57
of the media was talking
6:59
about the dangers of the Internet. Not
7:02
only that, personal, which were
7:04
mostly newspaper nine hundred
7:06
numbers, had a very bad
7:08
reputation. Fran Meyer
7:10
was a classmate of Kremins from
7:12
Stanford. When she joined electric
7:14
classifieds, Kremen put her in charge
7:16
of match dot com. Personal's
7:19
had an image problem. Myers
7:21
says that the personal ad sections
7:23
of local weekly newspapers often
7:26
featured fake ads that were
7:28
basically scams. Ads
7:30
like I'm interested in a game
7:32
bank.
7:32
Really disgusting, that would,
7:35
though, generate lots of
7:37
phone calls to the nine hundred number.
7:39
Okay? So this is the reason
7:42
why Brussels were
7:44
considered fairly sleazy. Beyond
7:46
that, the Internet was new for most
7:48
people. And for those who are
7:50
already online, meeting someone often
7:53
meant anonymous conversations in
7:55
occasionally sketchy chat rooms.
7:57
So Matt and Meyer had to figure
7:59
out how to clean up the Sleeve's factor
8:02
and begin to build trust. She
8:04
said that they started with the idea that
8:06
men would follow women. And the way to get
8:08
women on match was to make sure the men were serious.
8:10
A great way to do so,
8:12
make them pay to use the service. Subscriptions.
8:16
Once we started charging, the percentage
8:18
of women went up almost
8:20
immediately. And I
8:22
think it's because it sort of qualified the
8:24
guys that were on the service. There
8:26
were a lot of other online personal
8:29
but there was none that was really
8:31
taking a brand focused,
8:33
target focused approach. And
8:35
I think that's why we emerged as
8:38
the winner from really for the very
8:40
beginning. Today,
8:42
we adapt our regular weekly
8:44
feature computer line to
8:46
Valentine's Day. The search for true
8:48
romance, as you probably know, can begin
8:50
just about anywhere. But these days, many of
8:52
those seeking soul mates are
8:54
turning to the Internet. Online
8:56
dating spree brand got the Good Morning
8:58
America seal of approval in the late
9:00
nineties. By then, a
9:02
lot had changed. For one
9:04
thing, more people were using the Internet,
9:06
and culturally, things were
9:08
shifting to. Conversations about
9:11
cyber sex in shows like sex in the
9:13
city and films like you've got
9:15
male were helping to eradicate
9:17
the online dating is dangerous and
9:19
weird stigma. It wasn't enough
9:21
for the owners of electric classifieds.
9:24
Kremen was already gone. He bounced in
9:26
ninety six after butting heads with investors.
9:28
A parade of new CEOs
9:30
did not see a future for online
9:33
dating. In nineteen ninety
9:35
seven, electric classifieds
9:37
sold match dot com. This
9:41
is where Media Mogul bury dealer
9:43
comes in. His company bought Match
9:45
dot com in nineteen ninety nine for
9:47
fifty million dollars. Dillard
9:49
was an entertainment executive
9:51
who'd been the chairman at paramount
9:53
pictures and launched the Fox network.
9:56
In nineteen ninety five, he made his
9:58
last big play in TV and
10:00
bought a bunch of regional stations.
10:01
Then along came the Internet. And
10:04
essentially, we followed our curiosity.
10:06
We're not deal junkies in a sense,
10:08
but there was a lot of curiosity and
10:10
a ton of opportunity. Yeah.
10:13
And so we just follow
10:15
the opportunity.
10:16
That's stillers speaking to fortune magazine.
10:20
Opportunity to him meant gathering
10:22
his acquisitions under one corporate
10:24
umbrella. The name of his
10:26
behemoth was Interactive Corp. IAC
10:28
for short. When IAC
10:30
bot match dot com, the website
10:32
had five hundred thousand users.
10:34
That's roughly the population
10:36
of Minneapolis. But Dillard wanted
10:38
Match to dominate the whole country
10:40
and then the world.
10:46
He did what he did best and went on a deal
10:48
making spree. He bought exclusive
10:50
rights to the personal section of New York
10:52
Mag and BET. He
10:55
partnered with MSN and AOL to
10:57
increase Match's membership base.
10:59
Then there was the marketing. National
11:02
radio and TV spots inviting people
11:05
to come and get your
11:05
love. A very two
11:08
thousand and six partnership with
11:10
doctor Phil.
11:10
Jody. Oh, Jody.
11:13
Sorry. You still daydreaming about
11:15
mister Wright? Yeah. You've got
11:17
personality looks. I Q. You
11:19
just need little guy Q. That's all.
11:22
Visit mashes
11:22
dot com today. A campaign
11:24
for people who still felt like online
11:26
dating was for losers. It
11:29
featured real match users. In
11:34
this ad from two thousand and seven, Danish
11:37
beauty twenty two is wearing an
11:39
evening gown. She's gorgeous
11:41
and glamorous. The tagline for
11:43
the campaign, it's okay
11:45
to look. Whether
11:47
it was Match's aggressive marketing,
11:49
greater Internet usage, a
11:51
shift in pop culture, or
11:53
all of these things, At some
11:55
point, online dating became a
11:57
thing. And match dot com
11:59
was leading the pack. Here's
12:02
Diller again, speaking to Fortune in
12:04
two thousand and nine, about ten years
12:06
after first by match.
12:09
Millions five hundred thousand people pay twenty
12:11
five bucks a month or so -- Mhmm. --
12:13
to do this thing. Now
12:16
and that's a very
12:18
good margin really
12:20
remarkably solid business.
12:22
With a solid business, a good margin,
12:24
and cash flow, IAC
12:26
could use its war chest to level
12:28
up matched outcome into something entirely
12:31
new.
12:31
IAC is a holding
12:34
company, meaning they have stakes in a
12:36
variety of other businesses. And
12:39
so it's like a conglomerate. They
12:41
don't just have one type
12:43
of business.
12:44
David Marcus runs ever
12:46
more global advisers, an investment
12:48
firm that specializes in holding companies
12:50
like
12:50
IOC. Marcus is a
12:53
big fan of the Dillard Way.
12:55
I think IAC as a compounding machine.
12:57
They just do this. They
13:00
put in these tiny things. Spend
13:02
years developing them. Then
13:04
what comes out the other side is a great business
13:06
that can live and stand and thrive on
13:08
its own. Put it
13:10
even more simply. Think about a magician's
13:13
hat. IAC itself is the
13:15
magician's hat. And over the
13:17
years, he's been pulling all these rabbits
13:19
out. But these are rabbits that are multibillion
13:21
dollar opportunities. It
13:23
wasn't enough that Match dot com was growing and
13:26
making money. Dealers still
13:28
wanted to forge a company that would dominate
13:30
online dating entirely. In
13:34
two thousand and nine, match dot
13:36
com became Match Group, its
13:38
strategy to eat
13:40
the competition. That same year,
13:42
Match Group made its first acquisition,
13:45
People Media, for eighty million
13:47
dollars. A little over a year
13:49
later, it acquired Meetic.
13:51
Each of these sites brought something unique
13:53
to the business. People media
13:56
had niche brands, specifically
13:58
social connection websites that
14:00
included our time dot com and black
14:02
people meet dot com. Meadec
14:04
was really popular in France and lip
14:06
match get its tentacles into the European
14:09
market. But the most important
14:11
thing was that these acquisitions
14:13
brought millions more people
14:15
under the Match Group umbrella. To
14:17
match Scoop was growing, but it was also
14:19
wary of the competition. Its
14:21
biggest problem in twenty eleven was
14:23
OkCupid. The
14:26
site was reaching younger Gen Xers
14:28
and Millennials who were curious about
14:30
online dating, but reluctant to
14:32
fork over thirty dollars a month for a match
14:34
dot com subscription. An
14:36
okay cupid was free. It
14:38
liked to rub that in match his face.
14:40
In fact, in those days, it
14:42
cast a lot of aspersions on match.
14:45
Match's marketing claimed that twelve
14:47
couples got engaged today thanks to match
14:49
dot com. OkCupid
14:51
took aim at this brag with a snarky
14:53
blog post suggesting that given
14:55
matches scale, this was kind
14:57
of a rip off. What's
14:59
more compared to OkCupid, Match
15:01
was old school. Its users were
15:03
still building and browsing elaborate
15:05
profiles. OkCupid did
15:07
things a little differently. It
15:10
had users answer tons of
15:12
personality questions to get a
15:14
compatibility percentage with other
15:15
users. It felt scientific,
15:18
but fun. So in the case of
15:20
OkCupid, it was clearly
15:22
attracting, like, a more
15:25
coastal, progressive,
15:27
geeky data oriented person. I'm
15:29
Renith Tombray, CEO of
15:31
Match Americas. So it was a
15:33
very unique passionate user
15:35
base that like to answer questions and like it was
15:37
a very different way of analyzing
15:39
and matching people as well
15:41
as assessing people.
15:43
So instead of competing with OkCupid, match
15:46
just bought it. Match's
15:51
next major target was plenty of
15:53
fish, a free dating site that was wildly
15:55
popular in the mid-twenty ten's.
15:57
It was launched by Marcus
15:59
Friend, a computer scientist
16:01
back in two thousand and three. And
16:03
it became so successful because Friend
16:05
mastered the SEO game. When people
16:07
searched for dating in LA or
16:09
dating in New York, They would see plenty of
16:11
fish at the top of the results.
16:14
Kim Kaplan joined the company in two
16:16
thousand nine, so my first
16:18
week at plenty of fish, we went
16:20
to an online dating conference in
16:22
Miami. And Marcus
16:24
got up on stage and was presented with a
16:26
Darth Vader helmet. And it was
16:28
basically them saying you're gonna
16:30
kill everybody in the industry. In
16:32
a two thousand and nine profile,
16:35
in Inc. Magazine scene, friend talked
16:37
about how he worked one hour a day and
16:39
made ten million dollars each year running
16:41
the site from his apartment. Marcus
16:43
said he would never sell. He
16:45
reiterated that number of times to
16:47
everybody. I'm never selling. I'm never selling. I'm
16:49
never
16:49
selling. Why would he? He was making
16:52
millions and he owned one hundred
16:54
percent of plenty of fish, which,
16:56
by the way, was true to its name.
16:58
It had three point six million
17:00
daily active users in twenty fifteen.
17:03
I'm enough
17:03
Tambre again. I think it
17:05
was number two in
17:07
the country. So that was like, obviously, it
17:09
was huge and
17:12
extremely popular. In, like,
17:14
the smaller towns or
17:16
small town
17:16
America. This was obviously a
17:19
problem for Match Group a
17:21
rival dating platform with huge reach that refused
17:24
to be bought. But
17:26
at some
17:26
point, Friends' position on selling
17:29
had evolved.
17:31
He went to dinner
17:32
with Match Group CEO, Sam Yagan. And
17:34
by the end of it, Match owned plenty
17:36
of fish. Friend left
17:38
with over half a billion dollars
17:41
in his
17:42
pocket. It was
17:45
Match Group's largest
17:48
acquisition to date. With
17:50
plenty of fish in its portfolio, Match
17:52
Group now owned four of the five
17:54
top dating brands in North
17:55
America. This morning, the
17:56
biggest dating websites are getting ready to
17:59
woo, walk Street, Barry Dillard's
18:01
company.
18:01
In November twenty fifteen, Match
18:03
Group went public.
18:04
It was the moment
18:06
when Barry Dillard pulled the rabbit out of his magician's hat
18:08
and showed Wall Street just how much
18:11
online dating was worth. IAC
18:15
had spent nearly one point three billion
18:17
dollars to acquire twenty five brands for
18:19
its dating
18:19
portfolio. Match
18:22
Group's market cap at IPO was nearly three
18:24
billion dollars.
18:25
More and more daters were turning to mobile
18:28
apps to meet people. While
18:30
match owned the most popular mobile dating app
18:32
out
18:32
there, it wasn't bringing in much
18:35
money.
18:35
That was about to change.
18:46
Music
18:47
pop quiz time. Can you identify
18:49
these three sounds? That's an 808.
18:52
It's made by pitching and distorting the
18:54
sound of a kick drum it's now replaced
18:56
bass guitar in countless pop records
18:58
from Drake to Kim Petras. Okay.
19:00
Number two. That's a
19:03
vocal chop. A short
19:05
sample of a singer, cut up, drenched
19:07
in reverb, and made totally
19:09
ubiquitous through the hands of EDM producers
19:11
like SquirrelX. Alright. Last one.
19:14
That's a resize. It's a
19:16
sludgy synthesized baseline created
19:18
by producer, Kevin. And Reese Saundersen in nineteen eighty
19:21
eight. You can hear it in a genre like
19:23
Jungle, Drummond Base, UK
19:25
Garage, and it's even featured all
19:27
over Taylor Swift's latest record. The
19:29
sounds of popular music are always
19:32
evolving. If you want to be able to
19:34
know all of it sounds. The switched on pop podcast
19:36
will break it down for you. I'm Charlie
19:38
Harding, the cohost of switched on pop. And
19:40
if you can name this sound?
19:43
Honestly, you should come on the show and tell us about
19:45
it. Switched on pop comes out
19:47
every Tuesday wherever you
19:49
get podcasts. In
19:57
twenty thirteen, about a third of
20:00
Match Group's users were signing up for
20:02
its products on mobile devices. By
20:04
twenty fifteen, that number was closer
20:06
to seventy percent. Part of this
20:08
was thanks to Tinder, which was created in
20:10
an incubator owned by IEC.
20:13
That relationship eventually evolved
20:15
into Match Group owning the app. Dinder
20:17
still had something of a startup spirit though.
20:20
It's spent the first couple of years
20:22
focused on growth, not
20:24
revenue. That all changed when Match Group
20:26
was preparing to go
20:27
public. I do remember,
20:28
you know, finding out, like, oh, hey, we have
20:31
to monetize I think based upon an
20:33
earnings call. That's
20:34
Jonathan Badin, one of the cofounders of
20:37
Tinder. And I was like, wait,
20:38
we're we're what? It's like,
20:40
okay.
20:41
Tinder had followed a common playbook,
20:43
make the app free, and figure out how
20:45
to make money later. Well,
20:47
it was later. And Match Group
20:49
wanted Tinder users to start paying
20:52
up. Tinder just had to find out
20:54
what users would actually shell
20:56
out for. Jes Carbono
20:58
was one of the people tasked with figuring
21:00
that out. In twenty fourteen,
21:02
she was studying sociology at
21:04
UCLA, and writing about online dating for
21:06
her dissertation. She was
21:09
also using dating apps. Carbono
21:11
had recently matched with Sean Rod,
21:13
Another one of Tinder's cofounders. She
21:16
took it as a sign when he started to message
21:18
her while she was on a boring date a few
21:20
days
21:20
later. I
21:22
was forth while all this was happening
21:24
in the back or live messaging, Sean,
21:27
the guy either thought I had a urinary tract
21:29
infection or a cocaine habit or
21:31
I was wotally uninterested.
21:33
It was obviously the third
21:35
option here. She pitched
21:37
her research and herself And
21:39
soon
21:39
enough, she was working at Tinder's offices in West
21:42
Hollywood.
21:43
One of
21:46
her tasks she says, was to dig
21:48
through the data from Tinder's user
21:50
service. I helped them monetize. I helped
21:52
them figure
21:52
out, you know, what people were willing to
21:54
pay for. She wanted to know, would
21:57
members drop money on a tool that would help
21:59
them stand out from the crowd?
22:01
I'll often were they going to
22:04
use it? Under what circumstances did they
22:06
use it? Were men more likely
22:08
to use it than women? These were all questions that
22:10
I was trying to answer in
22:12
the back of my mind to
22:14
understand the motivation for whether or not we should be
22:16
investing in
22:16
it. Her research was
22:19
fed to teams that developed special features.
22:21
What Tinder calls superpowers.
22:23
There was the boost which
22:25
got your profile seen by more people for
22:27
a limited period. And the super
22:29
like, but you could send someone to show them
22:31
that you really liked them. But
22:34
these features were not
22:35
free. I'm gonna again. We are constantly
22:38
looking at various
22:40
ways to say give users
22:42
a way to enhance their chances
22:45
succeeding on the
22:45
app, and that's something that users
22:48
always willing to pay for. End
22:51
user's dead. They spent millions
22:53
seeking an advantage on the app,
22:55
and on subscriptions, which
22:57
Tinder added next. In twenty
22:59
sixteen, it brought in
23:01
a hundred sixty nine million dollars in revenue.
23:03
And still match wasn't
23:06
finished. There were plenty of other dating
23:08
apps that could pose a threat to
23:10
Tinder's dominance. So
23:12
Match Group went back to its old
23:15
playbook. Competition? No
23:17
problem. We'll just buy
23:19
it. In the mid twenty tens,
23:21
dating apps were mostly the same.
23:24
All the dating apps were Tinder except
23:26
for what's your one little wrinkle.
23:28
That's Tim McHugan, a former executive
23:30
at Hinge. In the early
23:32
years, Hinge was pretty much
23:34
just like
23:35
Tinder. it used social media
23:37
to connect users to friends or friends.
23:39
We were chasing their tails. We had
23:41
a swiping experience very much like theirs. We
23:43
had profiles very much like Fairs. We had a couple little
23:46
things that made it a little bit different and we had a
23:48
little bit of a different ethos and
23:50
all that was well and good, but
23:52
ultimately people saw us as the same kind of
23:54
product and they used us in the same
23:56
way as a numbers
23:57
game.
23:58
But Hinge didn't
23:58
want to beat Tinder. It wanted to
24:01
beat Tinder. Internally, we
24:03
were, like, at war against Tinder. We were, like, when you
24:05
got products to be better than Tinder's,
24:07
They're all about
24:08
amplification. They're all about, like, really,
24:11
like, human
24:11
design. Lucy Mork was a product
24:14
designer at Hinge in late twenty fifteen
24:16
when that war against Tinder
24:18
took
24:18
shape. A vanity
24:21
fair piece on Tinder's role in the rise
24:23
of hookup culture had gone negative
24:25
viral. Tinder, it said,
24:27
was patient zero in the, quote,
24:29
dating apocalypse. Romans as
24:32
we knew it had been destroyed, Tinder
24:34
had reduced it to swiping and bad sex and
24:36
anyone who was serious about finding a
24:38
partner was out of luck.
24:45
This is music from an animated
24:47
video that was part of Hinge's anti
24:49
Tinder campaign. In
24:51
it, a man who looks a lot like Hinge
24:53
CEO, Justin McCloud,
24:55
wanders through a kind of dating hellscape
24:57
with signs to attractions like
24:59
eye
24:59
candy, and one nighter.
25:01
Then he walks
25:04
through a door that says hinge and finds
25:06
a bright paradise of happy couples.
25:09
The campaign was called the dating apocalypse.
25:12
The same name as that Vanity Fairpiece.
25:14
It was not exactly
25:17
subtle. If
25:19
most other apps were just Tinder with a
25:21
twist, Hinge's new plan was to
25:23
be everything that Tinder
25:25
wasn't. To be the anti Tinder.
25:28
We knew that if you can
25:30
really, like, get to the core of
25:32
what young single woman's problem
25:34
is and solve that,
25:36
then you're going to, like, have
25:38
a successful dating product
25:41
And at the time, it was like single millennial
25:43
women, and they were just like so tired of
25:45
hookup culture, tired of
25:47
like not really knowing a man's intentions
25:49
that was the problem that we really set about
25:51
solving. Moore had
25:52
led a
25:52
redesign of Hinge to make it feel
25:55
less tendery. It
25:57
started with dropping the
25:58
swipe. The traditional
26:01
swiping app experience was in
26:03
numbers game. But did lead
26:05
to this, like, culture where
26:08
people weren't coming into
26:10
using a dating app with intention
26:12
of
26:12
really, like, dating and getting to know someone
26:14
and getting into a relationship. What
26:16
we wanted to do was to create a environment
26:20
where actions meant
26:22
what they were supposed to mean.
26:24
We knew we had to, like, slow people down
26:26
to make sure they're really measured with their decisions
26:29
and
26:29
to, like, help get the conversation started.
26:31
While Tinder like to brag about
26:34
its billions of swipes and introductions,
26:36
Hinge used different metrics.
26:39
Good dates per user became the
26:41
app's North Star according
26:43
to Tim McGugan. If we
26:45
were the best at creating dates for
26:47
our users, we would win. In
26:50
twenty seventeen, Hinge's strategy had
26:52
started to work. It was
26:54
gaining users and venture capitalists
26:56
were getting
26:56
curious. They weren't the
26:59
only ones. I'm
27:02
always looking for, like, what's missing. Right? Like,
27:04
is there a need? User need out there
27:06
that's that is not being
27:07
served.
27:07
I'm enough tambray again. Tinder
27:09
was like
27:10
fun and fast and
27:12
easy and like everyone loved it.
27:14
But there was a certain kind
27:17
of user, which I think I I call
27:20
it like more
27:22
intentional, like, millennial. Who
27:24
wanted, like, to spend more time on each profile, be a
27:26
little more intentional about who they want to
27:28
meet, learn more about that person.
27:31
They wanted something cool and fun
27:33
and modern and as
27:34
tender, but a little like slow and
27:37
intentional. In theory, Acquiring
27:39
Hinge would help Match Group remain a
27:41
one stop shop for any online
27:43
dating experience a user could
27:46
want. You know, if you hate Tinder, we've got
27:48
the anti Tinder. So in twenty
27:50
seventeen, Match made an initial investment
27:52
in Hinge. Two
27:55
years later, it bought the whole thing.
27:57
Hinge hadn't beaten
27:59
Tinder. It had joined it, but that
28:02
was good enough from Matt Guggen.
28:05
It was a strong sense
28:06
of validation that what we were doing was
28:09
working and that we had a
28:12
promising future
28:13
And Hinge
28:13
maintained its image as the anti
28:16
Tinder after joining Match
28:18
Group. Hinge wants you to
28:20
meet someone great. Even
28:25
if it kills us.
28:29
Hinge, the dating app designed to
28:31
be
28:31
deleted. But Match didn't buy
28:33
Hinge just to fill out a place in
28:35
its portfolio. It expected the app
28:37
to bring in cash
28:38
too. We
28:39
needed to make
28:42
money.
28:42
And so we needed to show
28:44
a return on investment. So
28:46
twenty twenty was the year when we needed to
28:48
monetize. Good thing there
28:51
was already a playbook for that.
28:53
Tinder's business model was a proven success.
28:56
It had made hundreds of millions of dollars
28:58
selling Super Powers a la carte
29:00
and bundling them into premium
29:03
subscriptions. In twenty
29:05
nineteen, Tinder bought in one point two
29:07
billion dollars in direct revenue.
29:09
It made sense for Hinge to go down
29:11
the same path.
29:12
What you can pay for is a
29:15
more effective or accelerated
29:18
experience of finding your next
29:19
date. Engaging with more people
29:21
at once, getting more attention.
29:23
Hinge debuted a new feature called The
29:25
Rose in twenty twenty. If you saw
29:27
someone you really liked, you could send them
29:30
a rose. Every
29:35
user got a free rose each
29:37
week. The idea was that if you are willing
29:39
to part with your precious rose
29:41
for someone, they'd be
29:43
more likely to hit you back. The
29:45
rose also bumped you to the top of their list
29:47
of people who had liked them. You
29:49
might be buried otherwise. And
29:52
a rose could also get you access to people
29:54
who are the most desirable on the app,
29:56
so called standouts. You
29:59
could buy more roses for three ninety
30:01
nine a pop and of
30:03
course they're cheaper by the dozen. If
30:05
all of this sounds familiar, that's
30:07
because the rose is just Tinder super like
30:10
in cellophane packaging. The
30:12
reception to some of these new
30:14
features, which were after all
30:16
ripped from
30:17
Tinder, was a little bit frosty. Lucy moored
30:20
again. Yeah. It's, like,
30:20
withholding pieces of
30:23
the experience and, like, dangling
30:25
tarot in front of a
30:26
user, but being like, oh, pay us
30:28
to get it. And I think that
30:30
can feel like kind of shitty as
30:33
a
30:33
user. But it seems like these apps are improving
30:36
on taking our
30:38
money and making us spend more time on
30:40
their apps than they are it
30:42
it actually matching us with people that
30:44
we're more interested
30:45
in. Right? That's Jeremy. We're
30:47
only using his first name because he works as
30:49
an app developer and wants keep
30:51
his job. Anyway, Jeremy
30:54
is one of the dozens of dating app users
30:56
we talk to for this series. He's
30:59
skeptical of the effectiveness of
31:01
roses and the other superpowers the app asks
31:03
users to pay
31:04
for. I would
31:05
never pay to send a rose to someone
31:07
on Hinge. And if I did,
31:10
I wouldn't think that they'd be motivated to
31:12
match with me over
31:15
someone else. But Jeremy
31:17
does pay for a hinged subscription.
31:19
It lets him see people who have already liked
31:22
him, and that he says makes
31:24
things more efficient. But
31:26
he's not sure efficiency has
31:28
helped him find what he's really looking
31:30
for. A partner. For
31:33
Jeremy and many other users, It's
31:35
not clear if buying all of this extra stuff
31:37
is working or if it's just
31:39
throwing money into the void. Sarah
31:42
Satyirov is another debtor. She diligently
31:44
uses her free rose every
31:45
week. I'd mean
31:47
upwards. For
31:48
sure, if it's been
31:50
a year, then I'm giving out fifty.
31:53
But I
31:54
do it
31:54
every week. So however long it's existed, I've
31:57
been doing it once a week. One
31:59
person has responded to a rose
32:01
she has sent. A guy who is
32:03
thinking about moving to her
32:04
city. They talked for months before
32:06
he arrived, but in person, the chemistry
32:08
was non existent. Think
32:10
I kept going out them because I was like, on paper, he
32:13
is so perfect. And there's
32:15
gotta be something here that I'm missing. I'm gotta be able to
32:17
unlock the connection here. And there
32:19
just wasn't. And I think that's the thing you
32:21
can't you can't account for and you
32:23
can't app optimize
32:25
for the
32:25
connection. You just can't make
32:28
that a feature. Edison
32:30
Wilkinson also has an hard luck with
32:33
roses. Hinge does that like, oh
32:35
my goodness. We know you'll be attracted to these women and you
32:37
have to, like, You give them the one rows
32:39
you get or pay five bucks for
32:41
a
32:41
rows. Yes. Absolutely. They do
32:43
that for sure.
32:44
you paid to interact
32:47
with those women? Absolutely. I appreciate
32:49
it. Okay. Absolutely.
32:54
And nothing has come from it
32:56
at all. So they
32:59
fool me one shame on
33:00
you. Fool me twice. I need to get
33:03
off the app. But that's
33:05
not what's
33:06
happening. People are staying on the app and
33:09
they're paying on the app
33:11
In twenty twenty, Hinge brought in ninety million dollars
33:13
in revenue. It nearly doubled
33:15
the following year. Hinge
33:17
was making more from each
33:20
paying user too. In twenty
33:22
nineteen, that was around five dollars per
33:24
month. In twenty twenty two,
33:26
it was twenty five. The
33:28
value proposition of these premium
33:30
features is more efficiency, more
33:32
visibility, more likes,
33:35
more more, but do they allow
33:37
users to achieve their romantic
33:39
goals, to find
33:40
partners? I put
33:42
the question to Ammirall Tombray.
33:45
The match group executive. Do you think
33:48
those other features
33:50
do you give people more success on
33:52
the
33:52
app? Yes. They do. I mean, like, the
33:55
obvious proof of that is that they're willing to
33:57
continue to pay for it because they see when they use
33:58
it, they see results. And when
34:01
they see more results, they want to buy it
34:03
again.
34:03
Obvious proof is a stretch. Of
34:06
the dozens of users we spoke to, it's
34:09
seemed that what people were paying for was the
34:12
promise of results. Like,
34:14
spend enough and surely they'll
34:16
meet the right
34:18
person. Eventually, I wonder, are the
34:20
roses helping people find
34:22
love? Is that what the data is
34:23
showing? It
34:24
is. It is. I mean, I think there's a stat on
34:26
the app. Self that, like, once if you send a rose, you have a far chance
34:28
of getting a response and
34:30
getting into a conversation than you don't.
34:35
That's not really what I
34:37
asked. But former Hinge
34:39
exec, Tim McHughgan, says
34:41
Match's moneymaking strategy While
34:43
not perfect is a win for
34:45
everyone. Users wanna go on dates. That's what the project is
34:48
there to deliver. People who pay for these
34:50
things are getting incremental value otherwise they
34:52
wouldn't
34:53
pay for them. The roses that they're buying are
34:54
working, the boost they're buying are working, the
34:56
subscriptions that they're buying are
34:58
working. They're having a better experience
35:01
and more dates. And if you want those things, then you can
35:03
pay for them. You you don't.
35:06
Great. Functionally, I can
35:08
know that we took nothing away from
35:10
the free experience when we introduce
35:11
them. And, you know, a
35:14
listener might believe
35:14
me or they might not.
35:17
I don't know. It's a hard thing
35:19
to prove and who
35:22
trusts big corporations,
35:23
you know. If you assume that
35:25
they're well meaning and good,
35:27
they wanna find you your perfect match so
35:30
that the more they know about
35:31
you, the more
35:34
perfect partner they can show you.
35:37
Eve Gilbert, the lawyer we heard from
35:40
earlier, doesn't think that
35:42
paying more for the apps means
35:44
more
35:44
success. The less benevolent
35:46
interpretation is that they're
35:48
trying to find a way to make
35:50
more money off of you. So maybe
35:52
if they know who exactly you're acted
35:56
to, they're gonna give you something
35:58
that's the store brand
36:00
diversion. So you're like, okay. So the
36:02
real one is out there.
36:04
It's like nibbling at
36:06
the
36:06
edges, but never getting the core. We
36:09
are
36:09
sold on the idea that it's just
36:11
a matter of time until
36:13
that special person use our profile and swipes
36:15
right. And paying for special
36:17
features will supposedly shorten the
36:20
process. It felt like
36:22
someone was trying to figure out
36:24
what I liked, but it didn't feel like they
36:26
were trying to do that to help
36:28
me in any
36:28
way. What
36:29
did you do in terms of that? Like, did that
36:31
change your relationship to the app did you stop using
36:34
them
36:34
and you're pissed about it?
36:36
I I kept using them
36:38
because what's the alternative? Luxmi,
36:47
welcome back. What did you
36:50
think? I take it that Eve Gilbert
36:52
does not pay for dating
36:54
apps. I don't think so, in his final
36:56
year of loss school, he actually
36:58
wrote a paper calling Match Group a
37:00
Monopoly. It's like that moment when you
37:02
realize Procter and Gamble makes all of your
37:04
household products
37:05
or that Rupert Murdoch is the hand behind a lot
37:07
of the news. But then you stop and
37:09
think about dating apps. You're hoping they'll
37:11
help you find other humans
37:13
to connect
37:14
with. And then you think they're run by a multibillion
37:16
dollar corporation trying to
37:18
keep its shareholders happy? That
37:21
can be concerning. Is this
37:24
late stage capitalism at its
37:26
finest? Anything and truly
37:28
everything has a price?
37:29
The thing that strikes me
37:31
is, Our love lives are being steered by Match Group's
37:33
business objectives. So people are paying
37:36
for all of these features and they don't
37:38
really know
37:38
if the money's getting them anywhere.
37:41
Yeah. Being a part of Match Group
37:43
seems to flatten these dating services into
37:45
money making
37:46
machines, but a lot of people feel
37:48
like there
37:49
aren't many alternatives to this world that
37:51
Match Group rules. And Match
37:53
Group truly has its tentacles in
37:55
every niche of the market from
37:58
black singles to
38:00
single parents to folks over fifty. No matter where you
38:02
turn, you're in the match
38:04
vortex, so many different cars. But
38:06
when you lift the hood and take a look at
38:08
the
38:09
engine, It's still
38:11
match group.
38:12
In our next episode, we're gonna
38:14
go one layer deeper into the system.
38:17
look the algorithms that are literally shaping our
38:20
romantic
38:20
futures. How daters are noticing
38:22
the patterns and how the apps work.
38:25
And trying to figure out ways to make them work a
38:27
little better
38:29
for themselves. Special
38:33
thanks to doctor Helen Fisher,
38:35
Mark Brooks, and Jim Osman.
38:38
Archival clips in this episode are from
38:40
CBS
38:41
this morning. Land of the Giants dating games is a
38:44
production of the cut, the
38:46
verge, and the Voxmedia
38:48
podcast network. OLUEA
38:50
KEMI A la Desui is the show's
38:52
producer. Cynthia Battuvisa is
38:54
our production assistant. Charlotte
38:56
Silver fact check this episode.
38:58
Julie Myers is our editor. Brandon McFarlane is our
39:01
engineer and also composed the show's
39:03
theme. Nicole Hill is
39:05
our show runner. Additional
39:08
support from Art Tong. Jay
39:10
Castanakis is deputy editor of
39:12
the Virgin. Nashakkoa is
39:14
our executive
39:16
producer. I'm Sengita Sincurts, and I am Luxury
39:18
Miranda Rogers. If you liked this episode,
39:20
please share it. And follow
39:22
the show by clicking the plus sign
39:25
in your podcast app.
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