"Mobile services are forecast to be the fastest growing segment over the next five years as operators, including Interactive Corp.
Industry consolidation is largely the result of increased mergers and acquisitions, as larger companies acquire well-established dating sites and companies to increase the density of their consumer bases.Because there are a myriad of different dating sites for consumers to choose from, companies are increasingly targeting companies with well-established reputations. Personals was one of the company's largest competitors, so this migration caused significant industry consolidation.(IAC announced in December that the dating website will be reorganized as a separate business called Match Group, with its own chairman, potentially setting the stage for a spinoff.) "A company like Match, they have the best potential to gain significant market share in terms of the number of subscribers," Anthony said.If it happens, the move will make it easier to turn Match into a separately traded company, a strategy Diller used before.“Fortunately, revenue has grown consistently throughout the remainder of the five-year period.” In response to the increasing number of US adults with smartphone devices, companies introduced a bevy of new products, including i Phone, Android and Blackberry dating apps, as well as locations services that use global positioning system (GPS) technology to find other single people in a customer’s vicinity.
In addition to product expansion, as consumer demand for online dating and matchmaking services has grown, new companies have entered the industry, says Moldvay.
In addition, revenue for the mobile dating market is expected to nearly double in the next five years, with rising smartphone adoption and new location-based features leading the market.
For more information, visit IBISWorld’s Dating Services in the US industry report page.
Since acquiring Match.com, IAC has bolstered the personals business with several acquisitions, including Ok Cupid in February 2011, expanding the Match unit's sales to 3 million in (2012) from 6 million in 2008.
It now has the highest brand visibility in the online personals industry and is the largest personals site in terms of traffic and revenues.
Match also owns the dating app Tinder—one of the fastest-growing apps in the market—and the company hasn't even begun to monetize it yet. Another factor boosting the online dating trend is cost: It's simply a much cheaper way of getting a date.