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GoDaddy domains business grows 15% in Q2

Kevin Murphy, August 10, 2017, Domain Registrars

GoDaddy saw its revenue from domain name sales increase by almost 15% in the second quarter, the company announced this week.

Its domains revenue was $263.3 million, up 14.6% on the same quarter last year.

That was part of an overall growth trend at the company, which saw revenue for the quarter up 22.3% at $557.8 million.

Revenue growth would have been a point higher but for currency fluctuations. GoDaddy now does about a third of its business outside its native US, helped a deal by its acquisition of Host Europe Group, which closed at the start of the quarter.

Net income for the period was $18.1 million, reversing a loss of $11.1 million a year ago.

Domains account for about 47% of overall revenue at the company.

GoDaddy said it had 17 million customers at the end of the quarter, June 30, adding about a million organically compared to a year earlier and 1.6 million from the HEG acquisition.

At the end of the quarter, the company had $591.2 million in cash and equivalents and debt of $3 billion.

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Gay.com, “worth $7 million”, donated to gay blog

Kevin Murphy, August 7, 2017, Domain Sales

The domain name gay.com has reportedly been donated for free to a gay rights group despite claims it is worth $6.9 million.

The Los Angeles LGBT Center said late last week that it is to take ownership of the domain, which will direct visitors to a recently launched blog.

The Center says it is the world’s largest provider of services to lesbian, gay, bisexual and transgender people.

The donation comes from VS Media, which acquired the domain last year and seems to run it as a community hub slash dating site. It runs an adult webcam site called Flirt4Free.

Gay.com apparently gets 200,000 visits per month.

According to the Center, gay.com will shortly begin pointing to a blog currently published at VanguardNow.org.

Chief marketing officer Jim Key said in a press release:

We’ve only just begun to think about future possibilities for the domain. But for now, the traffic from Gay.com to our new blog will help even more people learn how we’re building a world where LGBT people thrive as healthy, equal, and complete members of society.

The company decided to give the domain away to a worthy cause and invited five major gay charities to make proposals, the Center said.

The $6.9 million valuation comes from a VS Media appraisal, but does not seem to me like a hugely implausible number.

Whois records do not show a change of ownership recently, but the domain has been using a privacy service for some time so changes may not be obvious.

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Grumpy campaign claims victory after auDA U-turns

Kevin Murphy, August 7, 2017, Domain Registries

Australian ccTLD administrator auDA has scrapped two unpopular policies following the ouster of its chairman last week, allowing campaigning domainers to claim victory.

auDA said it has done away with its member code of conduct and has reinstated its policy of publishing its board meetings’ minutes.

These were two of the key demands of Grumpy.com.au, a member-driven campaign orchestrated by domainer-blogger Ned O’Meara.

Grumpy had called for the unilaterally imposed code of conduct to be replaced by one created in consultation with members, and that’s what auDA is now promising.

auDA said:

A membership consultation process on a new Code of Conduct will be held, and a revised Code will be submitted to the 2017 AGM. A Code of Conduct for Board members will be developed as part of the next phase of governance work and members will have the opportunity to provide input prior to any final decisions.

The code banned members, under pain of losing their memberships, from harassing or abusing staff. But it also banned them from bad-mouthing the registry in public or via the media — effectively gagging criticism.

auDA also said it will reinstate the practice of publishing minutes. It had recently agreed to restore previously published minutes, but it appears than meetings in future will also be publicly minuted.

Reversing these two policies were two of four demands the Grumpy campaign had made.

Another, calling for the head of chairman Stuart Benjamin, was rendered moot when Benjamin, apparently fearing that he could not win a simply majority of votes, quit just a few days before a member vote was due to take place.

The fourth, which called for auDA to scrap its plan to build and operate an in-house registry infrastructure, also appears to be moot. The company now seems to be talking about outsourcing to a third-party back-end provider.

auDA had refused, citing legal reasons, to include anything but the vote of confidence in the chair on its agenda for last week’s special members meeting.

O’Meara, in a blog post Friday, welcomed the U-turns. He wrote:

Before a group of members ever took this massive step of calling a special meeting, we pleaded with auDA to sort these issues out. We were ignored; then rebuffed.

And here we are today – with every single resolution now resolved (hopefully) in the members favour.

That’s what you call a strategy that backfired spectacularly on auDA.

auDA also said that it has commenced the process of seeking out a new independent director/chair.

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Iran rep reported to ICANN Ombudsman, again

Kevin Murphy, August 3, 2017, Domain Policy

Iran’s Governmental Advisory Committee representative has found himself reported to ICANN’s Ombudsman for alleged bad behavior for the second time in just a few months.

Outspoken GACer Kavouss Arasteh was referred to Ombudsman Herb Waye by consultant John Laprise, according to posts on mailing lists and social media.

Both men serve on an ICANN volunteer working group that is looking at matters related to the jurisdiction in which ICANN operates.

The group’s discussions have recently become extremely fractious, largely due to a series of combative emails and teleconference interventions from Arasteh.

Laprise eventually said on the list that Arasteh was being a “bad actor”, adding that “his tone, manner, and insinuations are detrimental and indeed hostile to the process.”

He later said on Facebook that he had reported the matter to the Ombudsman.

The spat centered on an August 1 teleconference in which members of the so-called WS2-Jurisdiction working group heard a briefing from ICANN lawyers on the Office of Foreign Assets Control, which oversees international trade sanctions in the US.

As well as enforcing sanctions against countries including Iran, OFAC maintains a list of people and organizations, many of them Iranian, that American companies are forbidden from doing business with.

It impacts ICANN because the organization in its normal course of business is often obliged to deal with ccTLD registries in sanctioned nations, for which it needs to apply for OFAC licenses.

Arasteh initially complained multiple times that the meeting had been rescheduled for August 1 — apparently with his initial consent — which is a national holiday in his home nation of Switzerland.

He also fought for ICANN lawyers to be asked to provide, at very short notice, a written briefing paper on OFAC, answering the group’s questions, prior to the teleconference taking place.

On neither issue did he receive support from fellow volunteers, something for which he seemed to blame group chair Greg Shatan, an intellectual property lawyer.

Arasteh’s criticisms of an increasingly weary Shatan sometimes seemed to border on conspiracy theory. All other working group members who publicly expressed an opinion said Shatan was doing a fine job herding this particular set of cats.

During the teleconference itself, Arasteh ate up the first five or six minutes of allotted time with a rambling, barely comprehensible complaint about the format of the meeting, compelling Shatan to eventually ask for his mic to be cut off.

In emails over the next 48 hours, the GAC rep continued his tirade against what he perceives as Shatan’s bias against him and called again for ICANN legal to provide a formal set of written answers to questions.

Some fellow group members believe Arasteh’s defensive and confrontational approach is merely a clash of cultures between his usual style of government diplomacy and the staid, tediously polite style of ICANN working group interactions.

Others are less charitable.

Still, the question of whether the latest WG friction has infringed any of ICANN’s “Expected Standards of Behavior” now appears to be in the hands of the Ombudsman.

Arasteh was also reported to Waye back in May, when he accused the chairs of a different ICANN working group of trying to exclude governmental voices from new gTLD policy-making by scheduling teleconferences at times he found inconvenient.

Waye subsequently reported that the complaint had been resolved between the parties.

In June, he said he was proactively monitoring a third working group mailing list after receiving allegations of harassment. That was unrelated to Iran.

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.storage to have pricey second sunrise

The .storage gTLD is to get a second sunrise period after being acquired and repurposed by XYZ.com.

The registry will operate a “Trademark Landrush Period” for three weeks from November 7 as the first stage of .storage’s reboot as an open-to-all gTLD.

It’s not technically a “sunrise” period under ICANN rules — that phase was already completed under previous owner Extra Space Storage — nor is it restricted to trademark owners.

Basically anyone with the money will be able to buy a .storage domain during the period, but at a price.

One registrar is reporting that registrants will have to pay a $1,500 application fee on top of the soon-to-be-standard higher $699-per-year registration fee.

That’s considerably more than most new gTLDs charge during their regular sunrise phases.

There’s no need to own a matching trademark, so neither the registry, registrars or Trademark Clearinghouse have any trademark verification costs to bear.

But that also means anyone can pick up any generic, dictionary .storage domain they want without the need for paperwork. XYZ has previously said that all domains will be available at the same price, regardless of their previous “premium” status.

I can see some intellectual property interests being uneasy with how this relaunch is handling trademarks.

Under its former management, .storage was set to be tightly restricted to the physical and data storage industries, reducing the chance of cybersquatting, so some brands may have avoided the sunrise period.

After the relaunch — general availability starts December 5 — there will be no such restrictions. However, the high price of standard registrations is likely to deter all but the richest or dumbest cybersquatters.

XYZ.com acquired .storage for an undisclosed sum in May. There are currently about 800 domains in the .storage zone file.

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