Match Group, the company behind popular dating apps like Tinder and Hinge, made a big announcement during its second-quarter earnings report. They have decided to discontinue livestreaming services on their apps, which has led to a 6% reduction in their workforce. This move is part of a larger shift in focus towards other offerings, such as generative AI technology.
Livestreaming features were introduced in dating apps like Plenty of Fish (POF) and BLK as a way to help users connect virtually during the COVID-19 pandemic. However, as the world moves beyond the pandemic, Match Group has seen a change in user behavior. This change has led to the decision to end livestreaming services on these apps.
In addition to ending livestreaming, Match Group is also shutting down the Hakuna app, which was acquired through the purchase of Hyperconnect in 2021. This app featured livestreams primarily in Korea and Japan. Match Group CFO Gary Swidler explained that ending livestreaming will result in a loss of approximately $60 million in annual revenue but will also lead to $13 million in annual cost savings.
The decision to end livestreaming was influenced by a variety of factors, including changes in user behavior, increased competition from platforms like TikTok, and the high costs associated with revenue sharing for livestreamers. Match Group believes that by focusing on areas where they have a proven advantage, such as generative AI, they can continue to grow and innovate in the dating app market.
As part of the workforce reduction, Match Group plans to redeploy some of the employees with expertise in artificial intelligence to Tinder and Hinge. These apps have been increasing their focus on AI technology in recent years, including features like an AI-powered photo selector for Tinder profiles.
Despite these changes, Tinder has experienced a decline in paid users for the seventh quarter in a row. The number of paid users dropped by 8% in the second quarter to 9.6 million. Match Group has been making strategic decisions to adapt to the changing landscape of the dating app market, and the move to end livestreaming is just one example of their efforts to streamline operations and embrace new technologies.
