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"By comparison, the Match Group, the industry's largest player, has closer to seven million paid users."Facebook's larger user base could allow it to receive higher advertising revenue, keeping the service free for users, which could serve to increase adoption of this platform over established dating apps."Match Group operates several dating services, including Match, Plenty Of Fish, and Tinder.
After Facebook's announcement on Tuesday, its share price fell from .27 US to .71 US by the end of the day.
"Clearly, part of this is an attempt on Facebook for public relations reasons to try to turn the page to have the media cover Facebook by looking at a different aspect of the company rather than talking about privacy concerns that users are having," he said.
"It's a very convenient coincidence, if it is purely a coincidence."Facebook CEO Mark Zuckerberg did acknowledge people may have privacy concerns as he announced the dating service at its conference for software developers in California on Tuesday.
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"In some cases people have been on the platform for 14 years and so they know so much about you that chances are, between your interests and the groups that you're a part of, they'll be able to make some pretty good recommendations."John Madigan, an analyst for market research company IBISWorld, said Facebook's dating feature "is likely to cause a shakeup in the dating services industry.""Facebook has some competitive advantages entering the dating industry with its user base of over two billion," Madigan said in an email to CBC News.
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