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Spark Networks Rolls Out JSwipe Monetization Strategy

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Spark Networks Rolls Out JSwipe Monetization Strategy

Spark Networks Inc (NYSE: LOV) has announced its monetization strategy for the popular Jewish dating app JSwipe. Known as the "Jewish Tinder," JSwipe was acquired by Spark Networks last year for $7 million. Spark Networks, which has a portfolio of over 30 niche-dating sites, also owns JDate, a pioneer in the online dating industry.

Spark Networks has experienced several management issues and missteps, which sent the stock down 44 percent in the past year. JSwipe is a bright spot in the company's portfolio, a popular app among millennials in the Jewish community. The app has seen its global user count reach 700,000, up from 450,000 in 2015. The app was launched in 2014.

Related Link: Tinder's New Thing: Group Dates

The problem for Spark was, however, JSwipe's free service likely cannibalized Spark's Jewish Network's total business (including paid service JDate), which saw a decline of 22 percent year-over-year in Q1.

The company is hoping to turn some of its JSwipe users into paying customers with the rollout of its First Class feature, a monthly $18 premium subscription. First Class attempts to monetize a highly engaged dating community.

Many free dating apps are rolling out premium subscriptions services that allow users special features and more visibility for their profiles.

Spark Networks releases its Q2 results Thursday after market close.

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Posted-In: JDate JSwipeEarnings Tech Best of Benzinga

 

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