That's BS, the population is literally aging into a new market evey year, but they want to nickel and dime to the point of exploitation their existing base ruining the reputation of the entire industry in the process.

I think, it's a myth that matchmaking has to be bad to survive. We see that in gaming all the time. The problem is just that physical world matchmaking is optimized to get recurrent customers instead of finding good matches. And that inevitably tanks the reputation. The first dating platform with good matchmaking will be the last one standing because it will suck the competition dry.
There is a market for good matchmaking. It's just not as big as the imagined market for bad matchmaking (which we see now isn't actually that big once people realize that the service sucks).

I never really believed that montra of if they were successful they lose a customer. I met my wife on a dating site over 13 years ago and told everyone I knew about it and how good it was. Many of the people that I told tried the site. It's a great way to spread your business if anything then through natural word of.mouth you actually kinda weed out people who are looking for the wrong things. Unfortunately the one I used ok cupid was bought by the big conglomerate and they change it so it was just like all the others. The other place I see it working is if governments offered the service because they want people to be matched up. I get people might not trust the government to match them up but why would you trust a company to do it then.

Or arguably it's the issue with running then as an unregulated business to begin with. It'd almost be better if it was just run as a public/non-profit database service: here's an anonymised, clinical, filterable list of other people who are looking for a relationship, and a safe way to connect with them. Like all other online services it'd be killed off by bots, trolls, and creeps, but still... If it's in the public's general interest for people to be in relationships?