Monday, January 18, 2010

Problems For American Singles And JDate

The American Singles dating site (www.americansingles.com) is owned by Spark Networks, stands alongside a long list of religious, ethnic and social dating websites belonging to the same company. The dating services cater to religious groups like the Mormons, Catholics and Seventh Day Adventists, along with well-known Jewish online dating sites, such as www.jdate.com and www.jewishmingle.com. But Spark also owns more ethnically-oriented dating websites for Black and Italian singles, namely www.blacksingles.com and www.italiansinglesconnection.com, as well as many others.

Spark Networks clearly wants to play a large role in helping people make romantic connections, but at the moment things have gotten just a bit rough. The Jewish dating services appear to have been hit the hardest, with an almost 25% drop in profits by the end of the second quarter of 2009. It makes sense that with the economy having slowed way down, people might cut back on memberships to websites that help them find dates. But the reduction in subscribers doesn't just come from American singles, despite how hard the United States has been hit by the downturn. With these sites also running in the UK, France and Israel, it seems that the income drop has come from several places.

It's possible that the large influence of a downturn in revenue from the Jewish dating sites comes from too much dependence on them by the company. In fact, one of the responses of Spark Networks to the loss of profits in the last couple of quarters was the announcement that they were going to try to reduce their dependence on just one brand. Yet their CEO Adam Berger admits that while all the other networks showed profits, the "lion's share" of the revenues still come from the Jewish sites. So the emphasis is still on revamping and "revitalizing" those, rather than pushing the other websites more than before.

Clearly, with the Jewish matchmaker dating sites being so important to Spark Network's profit margin, the company is going to concentrate on these sites to help fuel its recovery. One of the steps it has taken was to do a complete redesign of www.jdate.com in time for the summer of 2009, reducing the "clunky" feel and adding many new features. If Spark Networks can make the Jewish sites profitable again, then sites like American Singles (www.americansingles.com)and Christian Mingle (www.christianmingle.com) won't feel quite the pressure to carry a financial load they can't really handle.

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