Dating app giants like Tinder, Grindr, Match, and Bumble are set to introduce premium tiers with subscription fees that could reach as high as $500 per month. Tinder already announced its plans to launch a “high-end” membership earlier this month.
These well-known dating platforms are looking for ways to continue growing their earnings, as some apps are seeing a plateau in the number of users paying for their services. Bloomberg reports that introducing weekly subscriptions has become a strategy to entice more users to explore paid options.
Match Group Inc. has witnessed a strong demand for its newly launched weekly subscriptions. In the UK, there has been a remarkable 73% increase in Gen Z women shifting to paid plans on Tinder since its April introduction. Hinge, another app under Match Group, has experienced a similar surge.
Nevertheless, this approach comes with a challenge: weekly subscriptions tend to have less predictable income as users might sign up for a short period and then cancel.
To tackle this, companies are looking to experiment with higher-priced premium tiers. Match Group is preparing to unveil a subscription tier costing $500 per month in the coming months. Bumble Inc., already offering weekly options, plans to test a premium tier later this year, along with a more affordable choice designed specifically for Gen Z users. Grindr Inc. is also experiencing positive monetization results from its new weekly option and is considering introducing cheaper choices and a premium tier.
These premium tiers cater to individuals seeking a more personalized and precise matchmaking experience. Bumble’s CEO, Whitney Wolfe Herd, mentioned in a recent earnings call that some users view the value of spending $40 to $50 per month to find a special someone as a worthwhile investment.
While introducing high-priced tiers, both Bumble and Grindr are also looking into offering new tiers with lower costs compared to their current subscription plans.
At the end of 2022, a report indicated that Gen Z planned to use social media platforms like Instagram for dating and making new connections in 2023.
On the other hand, recently, a report conducted by data.ai showed that Bumble reached $2 billion in global user spending, trailing behind Tinder and Hinge but surpassing competitors like Happn and Bumble Inc’s Badoo.
Dating apps aren’t the only companies that are trying to find ways to keep up with Gen Z users. In April, YouTube announced two new ad alternatives that will make it simpler for advertisers to connect with Gen Z users.