Originally Posted by Mike33

Is this the result of mismanagement or changes in the market (ie. losing marketshare to free social network sites)? If it's the latter and AFF banners are still flying on just about ever site online, what does this say about the current and future prospects of other paid dating sites?

I don't understand how a popular dating site like that can be losing money. Their bandwidth costs are minimal, they don't produce nor buy any content. All other overhead is standard stuff - customer service, programming, maintenance. AFF just provides a forum for people to interact. How do you lose money on that? If the rumors are true that AFF is controlled by ex-Ibill execs, it would make perfect sense since they're versed at running enormously successful companies into the ground.

I'm completely spooked about 2009. It's gearing up to be a horrendous year.