I am guessing the same effect as freemium to the premium adult webcam site. People who spent none (or very little) have a new place to do things free. Paid subscription dating co-existed with sites like POF for years.
The only problems may be with a segmenting market and subscription or PPV long-term growth. However, the biggest growth in the Internet population is in the developing world so the spendable income is not like North America or Western Europe -- those people need lower spend outlets. That is a lot of the growth in free services you see.
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