Tinder, the popular dating app, has recently launched a high-priced subscription tier called Tinder Select, catering to its most active and engaged users. This exclusive plan, priced at a whopping $499 per month, is only available to less than 1% of Tinder's user base. For an annual cost of nearly $6,000, subscribers can access a range of new features, including VIP search, matching, and conversation options, which are not currently offered in the app's existing paid plans.
In an effort to provide more effective and efficient ways for users to find connections, Tinder Chief Product Officer, Mark Van Ryswyk, revealed that extensive testing and feedback were conducted with this particular audience over the past few months to develop this entirely new offering. Although Tinder has not provided specific details about the additional features included in the Tinder Select subscription, the company plans to roll out applications for this premium tier on a rolling basis.
Tinder's parent company, Match Group Inc., has previous experience with high-priced subscriptions through its acquisition of The League, an invite-only dating app targeting ambitious and career-oriented singles. The League offers a VIP plan costing $1,000 per week. Match Group President Gary Swidler believes that Tinder Select will attract a relatively small number of new payers but will have a significant impact on revenue. According to research firm Apptopia, Tinder's top 10% of users in terms of time spent on the app accounted for an average of 53% of total time spent this year.
Match Group CEO Bernard Kim sees expensive subscriptions as "low-hanging fruit" to compete with pricier plans offered by rival dating apps. The company began offering weekly subscriptions earlier this year to navigate slowed and negative revenue growth. It also unveiled a premium $60 plan for its popular Gen-Z dating app, Hinge. Despite declining subscriber numbers in recent quarters, Match Group has managed to increase average revenue per user on a yearly basis.
JPMorgan Chase & Co. analysts have raised their price target for Match Group stock, citing growth opportunities in online dating spending. The company is focused on making further changes this year, including a product refresh for Tinder, in order to attract Gen-Z users. Match Group remains confident in its future prospects, with the aim of stabilizing and eventually regaining growth in Tinder's paying user base.