Match Group Discontinues Livestreaming Services in Dating Apps, Resulting in Workforce Reduction
In a strategic move, Match Group has decided to discontinue livestreaming services in its dating apps, leading to a 6% reduction in its workforce. This announcement was made during the company's second-quarter earnings report. The decision reflects Match's shift towards other offerings, including generative AI technology.
The livestreaming feature was initially introduced in dating apps Plenty of Fish (POF) and BLK to facilitate virtual dating during the COVID-19 lockdown. However, with the world moving beyond the pandemic, user behavior has changed, prompting Match to end livestreaming services. The company also cited revenue sharing and competition from social media platforms like TikTok as factors influencing this decision.
Although this move is expected to result in a $60 million annual revenue loss, Match anticipates $13 million in annual cost savings. Additionally, the company plans to redeploy Hyperconnect employees with expertise in artificial intelligence to bolster AI efforts in popular apps like Tinder and Hinge.
In terms of financial performance, Tinder experienced a decline in paid users for the seventh consecutive quarter, with a decrease from 10 million to 9.6 million in Q2. This development follows Match's previous staff cuts in February 2023, where 8% of employees were laid off.
Overall, Match's decision to end livestreaming services underscores its commitment to focusing on core businesses with proven advantages, such as generative AI technology. This strategic shift aims to position the company for future growth and innovation in the competitive dating app market.