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New gTLDs growing faster than .com, latest Verisign data shows

Kevin Murphy, September 18, 2015, Domain Registries

New gTLDs grew faster than .com in the last 12 months.

That seems to be one of the conclusions that can be drawn from Verisign’s Q2 Domain Name Industry Brief, which was published (pdf) yesterday, if you dig into the numbers a little.

The headline number is that the number of all domains across all TLDs was 296 million, up sequentially by 2.2 million domains. That’s annual growth of 16.4 million domains, Verisign said.

I thought it might be interesting to see where that growth came from, so I plugged the numbers from Verisign’s last five DNIB reports into a spreadsheet, reproduced in this table.


From these numbers, we can calculate the quarterly sequential growth, measured in domains, for the whole DNS, for .com, for new gTLDs and for ccTLDs.

That table looks like this:


It appears from this table that .com grew by more domains than new gTLDs over the last year — 4.8 million versus 4.36 million — but the numbers are a bit misleading due to the way Verisign sources its data.

For most ccTLDs, Verisign has always used the third-party research outfit ZookNic, which has its own way of estimating registration volumes.

For new gTLDs, Verisign uses the zone files as published daily by ICANN — the same source DI and others use to measure volume.

However, for .com Verisign uses its own in-house data source. It is, after all, the .com registry.

The numbers for .com you find in the DNIB reports are exactly the same as the numbers Verisign gives financial analysts and investors when it reports its quarterly earnings.

And the company changed the way it reports those numbers in Q1 this year.

See that unusually high addition of 2.2 million names in .com in Q1 in the above table? That reflects the addition of very nearly 750,000 hidden .com names in March this year.

At that time, Verisign started counting domains that are on “hold” statuses, largely due to new ICANN policies on unverified Whois information.

The last two DNIB reports have sourced .com numbers with this disclosure:

The domain name base is the active zone plus the number of domain names that are registered but not configured for use in the respective Top-Level Domain zone file plus the number of domain names that are in a client or server hold status.

The actual Q1 growth number for .com should in the 1.4 million to 1.5 million range, which would bring .com’s total growth over the last four quarters down to roughly 4.1 million names.

An apples-to-apples comparison of extant zone-file domain growth would show new gTLDs beating .com, in other words.

But is this a fair measure of demand?

No. It’s fairer to say that .com still outsells its competition by a long way.

New gTLDs had yet to experience any significant churn by Q2 this year, as most had been on the market for under a year, so the growth numbers are more or less untempered by the renewal cycle.

While Verisign’s .com growth is net, for new gTLDs it’s almost all gross.

Verisign says in the latest DNIB has it had 8.7 million new registrations across .com and .net in the second quarter, which would be roughly eight times as many as new gTLDs — all several hundred of them combined — managed to move.

XYZ to rethink China gateway plans

Kevin Murphy, September 16, 2015, Domain Registries has withdrawn its request to start selling .xyz and .college domains into China via a local gateway service provider.

The company has said it will amend and resubmit its plan to ICANN, which had told it the idea “might raise significant Stability or Security issues”.

The registry wants to be one of the first non-Chinese registries to be able to comply with government regulations, which require all domain firms to have an official license.

As we reported last week, it had signed up with local registrar ZDNS, which would proxy for registrations made by Chinese registrants.

However, it has now withdrawn its Registry Services Evaluation Process request after ICANN said it would have to refer it up the chain to a special technical committee for review.

XYZ said in a letter to ICANN:

We are withdrawing this request because our gateway model is changed since the submission of the registry request and so the request is no longer accurate. We will shortly submit a new registry request to cover the updated gateway model.

It’s not clear what the specific “security and stability” concerns were.

Sunrise accounts for under 1% of new gTLD regs

Kevin Murphy, September 16, 2015, Domain Registries

New gTLD registries can expect just 125 sunrise registrations on average, according to statistics just released by ICANN.

The new data, current as of May 2015, also shows that there have been just 44,077 sunrise registrations in total, over 417 new gTLDs.

That’s less than 1% of the total number of new gTLD domain registrations to that date.

The numbers were published in a revised version of ICANN’s Revised Report on Rights Protections Mechanisms, a discussion paper on mechanisms such as sunrise, Trademark Claims and URS.

It also contains the first authoritative breakdown of sunrise regs by TLD, though it’s limited to the 20 largest.


Many of these numbers match closely what DI has previously reported, but .porn and .adult are substantially lower because ICM Registry only revealed consolidated numbers that took account of its unique non-TMCH sunrise periods.

None of the ICANN figures include .sucks, which hit sunrise after the numbers were compiled in May.

ICANN throws lifeline to flopping new gTLDs

Kevin Murphy, September 16, 2015, Domain Registries

New gTLD registries with lower than expected sales will now be able to reduce the amount of their “failure bond”.

ICANN has introduced a new Continued Operations Instrument Amendment Service, which will enable registries to raise or lower the amount of their COI depending on how business is going.

A COI is a letter of credit or cash in escrow that registries must secure in order to fund three years of emergency operations in the event that their businesses fail.

The amount of the COI is calculated from sales projection and ranges from $18,000 (for under 10,000 names) to $300,000 (over 250,000 names).

Let’s face it, at the moment the amendment service must surely be targeted largely at companies that over-estimated their future sales and secured a COI much larger than they needed.

If they’ve escrowed cash, the new service will allow some of that money to be freed up to spend on more useful activities.

ICANN said that if it determines that a registry has under-projected its sales, it will be able to refer it to the new service in order for the COI to be increased.

Currently, only four new gTLDs have over 250,000 names under management, judging by zone files.

Retail sales see CentralNic over double revenue

Kevin Murphy, September 16, 2015, Domain Registries

CentralNic saw a huge 171% increase in revenue and a tripling of billings in the first half of the year, based on its newly acquired retail business and the sale of premium names.

For the six months to the end of June, the London-based firm saw revenue of £4.4 million ($6.8 million) compared to £1.6 million ($2.5 million) a year earlier.

It moved into profit during the period, netting £287,000 ($442,000) after tax compared to a loss of £599,000 in the 2014 period.

CentralNic broke down its numbers into segments, showing that its new business areas were responsible for most of the growth, while the core registry business was relatively slow.

Registry was up 13% to £1.6 million ($2.5 million).

The new registrar business, which is lead by its $7.5 million acquisition, leaped from £180,000 to £1.8 million (£2.8 million), while its premium name sales business was £1.1 million compared to a negligible £50,000 a year earlier.

The company noted in a statement that Google was the first “megabrand” to use a .xyz domain name and expressed optimism that this may increase awareness of new gTLDs in future.

CentralNic is the second-largest new gTLD back-end, as measured by registration volume, largely due to its .xyz contract.

It also acts as back-end for .online, which left the blocks very quickly earlier this month, racking up over 57,000 names so far.