Latest news of the domain name industry

Recent Posts

Porn-block retail prices revealed. Wow.

Kevin Murphy, August 20, 2019, Domain Registrars

The first retail prices for MMX’s porn-blocking AdultBlock services have been revealed, and they ain’t cheap.

The registrar 101domain yesterday announced that it has started offering AdultBlock and sister service AdultBlock+, and published its pricing.

Trademark owners wanting to block a single string across .sex, .porn, .adult and .xxx will pay $349 per year with the vanilla, renew-annually service.

If they want the AdultBlock+ service, which also blocks homographs, they’ll pay $799 a year or $7,495 for the maximum 10-year term.

Compare this to the Sunrise B offer that ICM Registry made to trademark owners in 2011, where a string in .xxx cost roughly $200 to $300 for a 10-year block.

The two services are not directly comparable, of course. AdultBlock covers three additional TLDs and the AdultBlock+ service covers confusingly similar variants.

But trademark owners are buying peace of mind that their brands won’t be registered as porn sites, and the cost of that peace of mind just increased tenfold.

AdultBlock domains don’t resolve, and are a lot cheaper than domain registrations.

Renewing a single string in all four gTLDs at 101domain prices would cost around $480 a year, so customers will pay about 27% less buying a block instead.

The cost of the first year for those four domains would be $360, just $11 more than the AdultBlock price, according to 101domain’s price list.

MMX, which acquired the gTLD portfolio from ICM last year, is offering a discount on the AdultBlock+ service for customers buying before the end of 2019.

101domain is offering 10 years of AdultBlock+ for $3,999, a saving of $3,500.

101domain is not known as a particularly expensive registrar, so prices elsewhere in the industry could go higher.

Porn blocks could be worth millions to MMX

Minds + Machines could find itself making millions of dollars a year out of non-resolving defensive registrations in its recently acquired portfolio of porn-themed gTLDs.

The company recently announced the launch of AdultBlock and AdultBlock Plus, which will enable trademark owners to prevent anyone else registering their marks, and variants thereof, for up to 10 years.

Running the numbers, and taking into account MMX’s already substantial established client base for such services, AdultBlock could bring in as much as $11 million a year. But it’s almost certainly going to be much less than that.

The company won’t disclose it’s exact pricing for AdultBlock, or its revenue estimates, but it’s possible to do some back-of-the-envelope calculations and come to some ball-park guesses.

MMX has said that it’s pricing the service such that customers should be able to see a 35% saving compared to the cost of registering a single string across all four of its porn TLDs

The company acquired .xxx, .porn, .adult and .sex when it bought ICM Registry last year.

The wholesale fee for each of the four is believed to be about $68 a year. From this, we can calculate that the wholesale price of AdultBlock may well be around the $175-a-year mark.

There’s some room for error here, as MMX hasn’t revealed precisely how it came to its 35% number, but I think we can safely say we’re looking at $150 to $200 a year. For the purposes of this envelope, let’s split the difference and assume it’s $175.

It’s quite a high number, a bit like a recurring sunrise fee for a domain that you don’t even get to use.

But how many domains can MMX expect to be blocked?

A low-ball estimate could be modeled on the .porn/.adult/.sex sunrise periods.

.porn launched in 2015 and gathered 2,091 sunrise registrations, according to ICANN records, making it one of the largest new gTLD sunrise periods. The other two TLDs weren’t far behind.

If that’s a good guide for AdultBlock uptake, we’re talking about a piddling $360,000-a-year business.

But MMX has a secret weapon that it inherited from .xxx.

When .xxx launched back in 2011, it kicked off with two sunrise periods. Sunrise A was for trademark owners in the porn business who wanted to use their .xxx names. Sunrise B was for everyone else, who didn’t.

In Sunrise B, brand owners paid $162 (plus their registrar’s markup) to block their domains for a flat period of 10 years.

Customers couldn’t use their domains. They were registered to ICM and used specially designated ICM name servers to resolve to a standard, non-monetized placeholder page stating “This domain has been reserved from registration.”

There are over 80,000 domains using these name servers, but about 15,000 of those represent names of celebrities, cities, and religiously and culturally sensitive terms that ICM culled from Wikipedia and unilaterally reserved to help avoid a tabloid crucifixion if mileycyrus.xxx ever started bouncing children to something pornographic, such as one of her music videos.

(As an aside, I think it’s worth mentioning that the .xxx zone file only has 93,000 names in it. These means about nine out of 10 live .xxx domains are reserved by the registry.)

So we’ve got 65,000 trademarks that are currently blocked in .xxx, and they’re all going to expire in 2021 because ICM only sold blocks for the duration of its original 10-year ICANN contract.

If all 65,000 domains are upgraded to AdultBlock, the service would be worth over $11 million a year, to a company currently reporting annual revenue around $15 million.

But they won’t.

You don’t have to scroll too far down the .xxx zone file (and I didn’t) to discover some absolute garbage, no doubt the result of scaremongering around the 2011 .xxx launch.

I mean, seriously, look at some of this Sunrise B guff:

100percentwholewheatthatkidslovetoeat.xxx, 101waystoleaveagameshow.xxx, 1firstnationalmergersandacquisitions.xxx, 1stchoiceliquorsuperstore.xxx, 2bupushingalltherightbuttons.xxx, 247claimsservicethesupportyouneed30minutesguaranteed.xxx, 3pathpowerdeliverysystembypioneermagneticsinc.xxx

I think we’re going to be looking at a significant junk drop of blocked domains come 2021.

That said, I think MMX may have a psychological advantage here, when it comes to persuading Sunrise B users to “renew”.

Who hasn’t renewed a domain name they strongly suspect they will never use or sell, simply because they couldn’t bear the thought of somebody else owning “their” domain?

An additional consideration for brand owners is that these Sunrise B names are going to show up on drop-lists when they are eventually deleted from the .xxx zone file, perhaps giving inspiration to cybersquatters.

This is a fantastic opportunity for MMX and brand protection registrars to put the hard sell on its Sunrise B customers to “renew” their blocks by upgrading to the new and improved AdultBlock service, which could cost literally 10 times more than what they originally signed up for.

AdultBlock is of course more comprehensive than Sunrise B. It covers three additional TLDs, for starters, and customers can pay a little more for potentially thousands of potential homographs (non-Latin-script domains that look almost identical to the original) to also be blocked.

MMX isn’t waiting until 2021, however. It’s currently offering companies that buy a 10-year-block before the end of 2019 the AdultBlock+ service for the price of the vanilla, no-variants offering.

Existing Sunrise B customers have until the same deadline to purchase the new service without having to have their trademarks re-verified, which carries an additional fee.

For those that miss this early-bird offer, come December 2021, the holders of up 65,000 trademarks are going to face a stark choice: sign up to pay a couple hundred bucks a year, or risk their brands being snapped up by pornsquatters.

Brand-blocking service plotted for porn gTLDs

MMX wants to offer a new service for trademark owners worried about cybersquatting in its four porn-themed gTLDs.

The proposed Adult Block Services would be similar to Donuts’ groundbreaking Domain Protected Marks List and the recent Trademark Sentry offering from .CLUB Domains.

The service would enable big brands to block their marks from registration across all four TLDs for less than the price of individual defensive registrations.

Prices have not been disclosed, but a more-expensive “Plus” version would also allow the blocking of variants such as typos. The registry told ICANN:

The Adult Block Services will be offered as a chance for trademark owners to quickly and easily make labels unavailable for registration in our TLDs. For those trademark owners registering domain names as a defensive measure only, the Adult Block Services offer an easy, definitive, and cost-effective method for achieving their goals by offering at-a-stroke protection for TLDs included in the program. The Adult Block Services are similar to the Donuts’ DPML, Uniregistry‚Äôs EP and EP Plus and the .Club UNBS and should be immediately understood and accepted by the trademark community.

The Adult Block will allow trademark owners to block unregistered labels in our TLDs that directly match their trademarks. The Adult Block Plus will allow trademark owners to block unregistered, confusingly similar variations of their trademarks in our TLDs.

It seems more akin to DPML, and Uniregistry’s recently launched clone, than to .CLUB’s forthcoming single-TLD offering.

The Registry Service Evaluation Process request was filed by ICM Registry, which was acquired by MMX last year.

It only covers the four porn gTLDs that ICM originally ran, and not any of the other 22 gTLDs managed by MMX (aka Minds + Machines).

This will certainly make the service appear less attractive to the IP community than something like DPML, which covers Donuts stable of 242 TLDs.

While there’s no public data about how successful blocking services have been, anecdotally I’m told they’re quite popular.

What we do have data on is how popular the ICM gTLDs have been in sunrise periods, where trademark owners showed up in higher-than-usual numbers to defensively register their marks.

.porn, .adult and .sex garnered about 2,000 sunrise regs each, more than 20 times the average for a new gTLD, making them three of the top four most-subscribed sunrise periods.

Almost one in five of the currently registered domains in each of these TLDs is likely to be a sunrise defensive.

Now that sunrise is long gone, there may be an appetite in the trademark community for less-expensive blocks.

But there have been calls for the industry to unify and offer blocking services to cover all gTLDs.

The brand-protection registrar Com Laude recently wrote:

What brands really need is for registry operators to come together and offer a universal, truly global block that applies across all the open registries and at a reasonable price that a trademark owner with multiple brands can afford.

Quite how that would happen across over 1,200 gTLDs is a bit of a mystery, unless ICANN forced such a service upon them.

ICA rallies the troops to defeat .org price hikes. It won’t work

Kevin Murphy, April 25, 2019, Domain Registries

Over 100 letters have been sent to ICANN opposing the proposed lifting of price caps in .org, after the Internet Commerce Association reached out to rally its supporters.

This is an atypically large response to an ICANN public comment period, and there are four days left on the clock for more submissions to be made, but I doubt it will change ICANN’s mind.

Almost all of the 131 comments filed so far this month were submitted in the 24 hours after ICA published its comment submission form earlier this week.

About a third of the comments comprise simply the unedited ICA text. Others appeared to have been inspired by the campaign to write their own complaints about the proposal, which would scrap the 10%-a-year .org price increase cap Public Interest Registry currently has in place.

Zak Muscovitch, ICA’s general counsel, told DI that as of this morning the form generates different template text dynamically. I’ve spotted at least four completely different versions of the letter just by refreshing the page. This may make some comments appear to be the original thoughts of their senders.

This is the original text, as it relates to price caps:

I believe that legacy gTLDs are fundamentally different from for-profit new gTLDs. Legacy TLDs are essentially a public trust, unlike new gTLDs which were created, bought and paid for by private interests. Registrants of legacy TLDs are entitled to price stability and predictability, and should not be subject to price increases with no maximums. Unlike new gTLDs, registrants of legacy TLDs registered their names and made their online presence on legacy TLDs on the basis that price caps would continue to exist.

Unrestrained price increases on the millions of .org registrants who are not-for-profits or non-profits would be unfair to them. Unchecked price increases have the potential to result in hundreds of millions of dollars being transferred from these organizations to one non-profit, the Internet Society, with .org registrants receiving no benefit in return. ICANN should not allow one non-profit nearly unlimited access to the funds of other non-profits.

The gist of the other texts is the same — it’s not fair to lift price caps on domains largely used by non-profits that may have budget struggles and which have built their online presences on the old, predictable pricing rules.

The issues raised are probably fair, to a point.

Should the true “legacy” gTLDs — .com, .net and .org — which date from the 1980s and pose very little commercial risk to their registries, be treated the same as the exceptionally risky gTLD businesses that have been launched since?

Does changing the pricing rules amount to unfairly moving the goal posts for millions of registrants who have built their business on the legacy rules?

These are good, valid questions.

But I think it’s unlikely that the ICA’s campaign will get ICANN to change its mind. The opposition would have to be broader than from a single interest group.

First, the message about non-profits rings a bit hollow coming from an explicitly commercial organization whose members’ business model entails flipping domain names for large multiples.

If a non-profit can’t afford an extra 10 bucks a year for a .org renewal, can it afford the hundreds or thousands of dollars a domainer would charge for a transfer?

Even if PIR goes nuts, abandons its “public interest” mantra, and immediately significantly increases its prices, the retail price of a .org (currently around $20 at GoDaddy, which has about a third of all .orgs) would be unlikely to rise to above the price of PIR-owned .ong and .ngo domains, which sell for $32 to $50 retail.

Such an increase might adversely affect a small number of very low-budget registrants, but the biggest impact will be felt by the big for-profit portfolio owners: domainers.

Second, letter-writing campaigns don’t have a strong track record of persuading ICANN to change course.

The largest such campaign to date was organized by registrars in 2015 in response to proposals, made by members of the Privacy and Proxy Services Accreditation Issues working group, that would have would have essentially banned Whois privacy for commercial web sites.

Over 20,000 people signed petitions or sent semi-automated comments opposing that recommendation, and ICANN ended up not approving that specific proposal.

But the commercial web site privacy ban was a minority position written by IP lawyers, included as an addendum to the group’s recommendations, and it did not receive the consensus of the PPSAI working group.

In other words, ICANN almost certainly would not have implemented it anyway, due to lack of consensus, even if the public comment period had been silent.

The second-largest public comment period concerned the possible approval of .xxx in 2010, which attracted almost 14,000 semi-automated comments from members of American Christian-right groups and pornographers.

.xxx was nevertheless approved less than a year later.

ICANN also has a track record of not acceding to ICA’s demands when it comes to changes in registry agreements for pre-2012 gTLDs.

ICA, under former GC Phil Corwin, has also strongly objected to similar changes in .mobi, .jobs, .cat, .xxx and .travel over the last few years, and had no impact.

ICANN seems hell-bent on normalizing its gTLD contracts to the greatest extent possible. It’s also currently proposing to lift the price caps on .biz and .info.

This, through force of precedent codified in the contracts, could lead to the price caps one day, many years from now, being lifted on .com.

Which, let’s face it, is what most people really care about.

Info on the .org contract renewal public comment period can be found here.

.london disaster leads to mixed 2018 for MMX

New gTLD registry MMX, aka Minds + Machines, suffered a huge net loss in 2018, largely due to its disastrous .london contract, even while its operating fundamentals improved.

For the year, MMX reported a net loss of $12.6 million, compared to a 2017 profits of $3.8 million, on revenue up 5% to $15.1 million.

The loss was almost entirely attributable to charges related to an “onerous contract” with one of its partners.

MMX has never disclosed the identity of this partner, but the only outfit that fits the profile is London & Partners, the agency with which MMX partnered to launch .london several years ago.

The registry, expecting big things from the geo-TLD, promised to pay L&P millions over the term of the contract, which expires in 2021.

But it’s been a bit of a damp squib compared to former management’s expectations, peaking at about 86,000 regs last year and shrinking ever since.

MMX says the estimated gap between the minimum revenue guarantee payable to L&P and the expected revenue is expected to bring in before 2021, is $7.2 million.

It’s recorded this as a charge on its income statement accordingly, along with another $4.2 million impairment charge related to the same contract.

The company recorded a $7.7 million accounting charge related to this contract in 2016, too.

The company says that to date it has lost about $13.7 million on the deal.

These charges, along with a few other smaller one-off expenses, were enough to push the company into the black for 2018.

But other key performance indicators showed more promise, helped along by the acquisition last year of porn-themed registry operator ICM Register, best-known for .xxx.

Notably, renewal revenue almost doubled, up 97% to $9.4 million.

Domains under management was up 37% to 1.81 million.

Operating EBITDA was $3.6 million, up 12.5%.

Looking ahead, MMX said billings for the first quarter are expected to be up 246%, due to the first impact of the ICM acquisition.

It also said it closed $500,000 of sales in .law in China in March. That would work out to over 5,000 domains, based on the retail price of about $100 a year, but those domains have yet to show up in the .law zone file, which only grew by about 200 domains last month.

MMX said it is planning to launch “a high-value defensive registration product” for corporate registrars by the third quarter.

If I had to guess, I’d say that is probably a clone of Donuts’ Domain Protected Marks List service, which offers trademark owners deep discounts when they defensively block strings across the whole Donuts gTLD portfolio.

It’s a model copied by other registries, including recently Uniregistry.