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Most businesses don’t care about .uk domains

The majority of businesses in the UK don’t care about direct second-level .uk domains, even when the benefits are spelled out for them, according to Nominet research.

The new survey found that only 27% of businesses would “definitely” or “probably” exercise their new right to buy a .uk domain that matches their .co.uk or .org.uk name.

That number only went up to 40% after respondents had seen a brief Nominet marketing pitch, the survey found.

Another 16% said they had no plans to get their .uk, post-pitch, while 44% remained undecided.

This was the value proposition the respondents saw (click to enlarge):

Nominet sales pitch

Under the direct .uk policy, all registrants of third-level domains, such as example.co.uk, have the right of refusal over the matching example.uk.

If they don’t exercise that right by June 10, 2019, the matching SLDs will be unfrozen and released into the available pool.

The new Nominet research also found out that most registrants don’t even know they have this right.

Only 44% of respondents were aware of the right. That went up to 45% for businesses and down to 33% for respondents who only owned .uk domain names (as opposed to gTLD names).

A quarter of respondents, which all already own 3LD .uk domains, didn’t even know second-level regs were possible.

Of those who had already bought their .uk names, over two thirds were either parking or redirecting. Individuals were much more likely to actually use their names for emails or personal sites.

The numbers are not terribly encouraging for the direct .uk initiative as it enters into its third year.

They suggest that if something is not done to raise awareness in the next few years, a lot of .co.uk businesses could find their matching SLDs in the hands of cybersquatters or domainers.

Nominet members (registrars and domainers primarily) were quizzed about possible ways to increase adoption during a company webinar today.

Suggestions such as making the domains free (they currently cost £2.50 a year, the same as a 3LD) or bribing a big anchor tenant such as the BBC to switch were suggested.

There’s a lot of dissatisfaction among the membership about the fact that .uk SLDs were allowed in the first place.

The number of second-level .uk names has gone from 96,696 in June 2014 to to 350,088 last year to 593,309 last month, according to Nominet stats.

Over the same periods, third-level regs have been shrinking, from 10.43 million to 10.22 million to 10.08 million, .

Rightside refuses Donuts’ “opportunistic” $70m gTLD offer

Rightside has rebuffed Donuts’ semi-hostile takeover attempt for its portfolio of gTLD registry contracts.

The question now is: will Donuts up the offer from the $70 million already on the table?

In a pre-markets statement today, Rightside said the offer “undervalued” the assets.

CEO Taryn Naidu is quoted as saying:

After thoughtful evaluation, Rightside’s Board has determined that Donuts’ proposal significantly undervalues Rightside’s Registry assets. We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.

The company reckons its gTLDs will be bringing in $50 million to $75 million in revenue a year in the next three two five years, which would represent substantial growth over current levels.

It made $2.6 million from the registry business in the first quarter this year.

Donuts’ offer could be considered “opportunistic” given that there’s some shareholder dissatisfaction with Rightside’s success rate with new gTLDs today.

Activist investor J Carlo Cannell and Uniregistry CEO Frank Schilling, both of whom own small but significant chunks of Rightside, have called on the company to get rid of some of its under-performers.

By announcing the offer publicly — apparently after months of private offers — Donuts might have been trying to capitalize on this unrest.

But pissed-off investors don’t necessarily want these gTLDs sold off cheap.

Rightside has 40 new gTLDs. A $70 million offer equals $1.75 million per gTLD. That’s fair way below the average sale price for gTLDs at ICANN auction, which is $7 million (or $3 million if you take the median).

Will Donuts now increase its offer, or back away?

UK cybersquatting cases flat, transfers down

The number of cybersquatting cases involving .uk domains was basically flat in 2015, while the number of domains that were transferred was down.

That’s according to Nominet’s wrap-up of last year’s complaints passing through its Dispute Resolution Service.

There were 728 DRS complaints in 2015, the registry said, compared to 726 in the year before.

The number of cases that resulted in the transfer of the domain to the complainant was down to 53%, from 55% in 2014.

That’s quite a bit lower than complainants’ success rates in UDRP. In 2015, more than 70% of UDRP cases resulted in a transfer.

Nominet reckons that the DRS saved £7.74 million ($notasmuchasitusedtobe) in legal fees last year, based on a “conservative” estimate of £15,000 per case, had the complaint gone to court instead.

More stats can be found here.

Verisign to get .com for six more years, but prices to stay frozen

ICANN and Verisign have agreed to extend their .com registry contract for another six years, but there are no big changes in store for .com owners.

Verisign will now get to run the gTLD until November 30, 2024.

The contract was not due to expire until 2018, but the two parties have agreed to renew it now in order to synchronize it with Verisign’s new contract to run the root zone.

Separately, ICANN and Verisign have signed a Root Zone Maintainer Agreement, which gives Verisign the responsibility to make updates to the DNS root zone when told to do so by ICANN’s IANA department.

That’s part of the IANA transition process, which will (assuming it isn’t scuppered by US Republicans) see the US government’s role in root zone maintenance disappear later this year.

Cunningly, Verisign’s operation of the root zone is technically intermingled with its .com infrastructure, using many of the same security and redundancy features, which makes the two difficult to untangle.

There are no other substantial changes to the .com agreement.

Verisign has not agreed to take on any of the rules that applies to new gTLDs, for example.

It also means wholesale .com prices will be frozen at $7.85 for the foreseeable future.

The deal only gives Verisign the right to raise prices if it can come up with a plausible security/stability reason, which for one of the most profitable tech companies in the world seems highly unlikely.

Pricing is also regulated by Verisign’s side deal (pdf) with the US Department of Commerce, which requires government approval for any price increases until such time as .com no longer has dominant “market power”.

The .com extension is now open for public comment.

Predictably, it’s already attracted a couple of comments saying that the contract should instead be put out to tender, so a rival registry can run the show for cheaper.

That’s never, ever, ever, ever going to happen.

Survey: more people know about new gTLDs but fewer trust them

People are becoming more aware that new gTLDs exist, but there’s less trust in them that there was a year ago, according to an ICANN-sponsored survey.

The second annual Global Consumer Survey, which was published late last week, shows that 16% of respondents had heard of specific new gTLDs, on average.

That’s up 2% on last year’s survey.

The number for TLDs added in the last year was 20%, with .news leading the pack with 33% awareness.

However, fewer people were actually visiting these sites: 12% on average, compared to 15% a year ago. For TLDs added in the last year, visitation averaged 15%.

And the amount of trust placed on new gTLDs added prior to the 2015 survey was down from 49% to 45% — half the level of .com, .org and .net.

For TLDs added since last year’s survey, trust was at 52% on average.

The 2015 survey looked only at .email, .photography, .link, .guru, .realtor, .club and .xyz. For this year’s survey, respondents were also asked about .news, .online, .website, .site, .space, .pics, .top, .bank, .pharmacy, and .builder.

The number of registered domains did not seem to have an impact on how aware respondents were on individual extensions.

.xyz, for example, had the lowest awareness of those used in the survey — 9% versus 5% in 2015 — despite being the runaway volume market leader and having scored PR coups such as Google’s adoption of abc.xyz for its new parent company, Alphabet.

Likewise, .top, second only to .xyz in the size league table, could only muster up 11% awareness.

.news, .email and .online topped the awareness list — with 33%, 32% and 30% respectively — despite having only about 500,000 names between them.

I’m not sure I buy much of this data to be honest. There’s some weirdness.

For example, the survey found that 28% of respondents claim to have visited a .email web site.

That’s a gTLD at least partially if not primarily designed for non-web use, with roughly 20,000 names that are not parked.

If over a quarter of the population were visiting .email sites, you might expect some of those sites to show up prominently in Alexa rankings, but they don’t.

But perhaps, if we take this survey as a measure of consumers perceptions, it doesn’t matter so much whether it reflects the reality of internet use.

The survey, conducted by Nielsen for ICANN, covered dozens of other aspects of internet use, including feelings on cybersecurity, navigation and such, and weighs in at 160 pages. Read it all over here.