ServiceMagic 2014 Annual Report Download - page 12

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Table of Contents
The Match Group
Overview
The Match Group segment consists of our North America dating businesses (which include Match, Chemistry, People Media, OkCupid,
Tinder and other dating businesses operating within the United States and Canada), our International dating businesses (which include Meetic,
Tinder and all other dating businesses operating outside of the United States and Canada) and our non-dating businesses, The Princeton Review,
Tutor.com and DailyBurn.
Through the brands and businesses within our dating businesses, we are a leading provider of subscription-based and ad-supported online
personals services in North America, Europe, Latin America, Australia and Asia. We provide these services through websites and applications that
we own and operate.
As December 31, 2014, we collectively provided online personals services to approximately 3.5 million subscribers. In addition, we own a
20% interest in Zhenai, Inc., a leading provider of online dating and matchmaking services in China.
Through the brands and businesses within our non-dating businesses, we provide a variety of educational services, including in-person and
online test preparation and tutoring (The Princeton Review and Tutor.com), as well as streaming fitness and workout videos across a variety of
platforms (DailyBurn).
Dating
Services. We provide online personals services through various branded websites that we own and operate, all of which provide single adults
with a private and convenient environment for meeting other single adults. These websites provide online personals services to registered members
(those who establish a username and password) and subscribers (those who establish a username and password and pay a subscription fee).
Within our portfolio of websites, we have both subscription1based and ad-supported offerings. Our subscription1based websites offer
registered members the ability to post a profile and use any related searching and matching tools free of charge, while subscribers have access to
enhanced tools and a broader feature set, including the ability to initiate, review and respond to communications with or from other users. Our
subscription programs consist of programs with a single1month term, with discounts for programs with various longer terms. Our ad1supported
websites generally provide online personals services with basic functionality without the commitment of a monthly subscription, in some cases
making a variety of premium or add-on features available for a fee. We also offer access to our services via various mobile devices through our
Match, OkCupid, Tinder and other branded mobile applications. We also provide live, local events for our Match members in certain markets in
North America and Europe.
Marketing. We market our online personals services through a wide variety of offline and online marketing activities. Our offline marketing
activities generally consist of traditional marketing and business development activities, including television, radio and print advertising and related
public relations efforts, as well as events. Our online marketing activities generally consist of the purchase of banner and other display advertising,
search engine marketing and e-mail campaigns.
Revenue. Dating revenue is derived primarily from subscription fees for our subscription1based online personals and related services.
Revenue is also derived from online advertising and the purchase of add-on or premium features.
Competition. The personals business is very competitive and highly fragmented and barriers to entry are minimal. We compete primarily with
online and offline broad1based personals, dating and matchmaking services (both paid and free), social media platforms and applications, the
personals sections of newspapers and magazines, other conventional media companies that provide personals services and traditional venues where
singles meet (both online and offline).
We believe that our ability to compete successfully in the case of our dating businesses will depend primarily upon the following factors:
•
the size and diversity of our registered member and subscriber bases relative to those of our competitors;
• the functionality of our websites and mobile applications and the attractiveness of their features and our services and offerings generally
to consumers relative to those of our competitors;
•
how quickly we can enhance our existing technology and services and/or develop new features and services in response to:
•
new, emerging and rapidly changing technologies;
•
the introduction of product and service offerings by our competitors;