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Four in 10 new gTLDs are shrinking

Kevin Murphy, September 18, 2017, Domain Registries

Forty percent of non-brand new gTLDs are shrinking, DI analysis shows.

According to numbers culled from registry reports, 172 of the 435 commercial gTLDs we looked at had fewer domains under management at the start of June than they did a year earlier.

On the bright side, that means the majority of them are still growing, but it’s still a pretty poor showing.

As you might expect, registries with the greatest exposure to the budget and/or Chinese markets were hardest hit over the period.

.wang, .red, .ren, .science and .party all saw DUM decline by six figures. Another 27 gTLDs saw declines of over 10,000 names.

Of the portfolio registries, Famous Four Media, Uniregistry and Afilias saw the steepest falls, each churning through hundreds of thousands of domains.

FFM strings including .science, .party and .date, which are regularly offered for under $0.50 and have terrible renewal rates, were among the biggest losers.

For Afilias, its .red, .blue and .pink combined saw volumes plummet by over 300,000. Its Korean-surname-themed .kim lost 90,000 names over the year.

Much of Uniregistry’s decline, I believe, is due to the expiration of thousands of domains that were essentially registry-owned.

Here’s a list of the top 40 biggest losers.

TLDMay 2016 DUMMay 2017 DUMChange
wang1,063,080647,837-415,243
red309,31951,473-257,846
ren305,80181,840-223,961
science332,455183,626-148,829
party243,918140,063-103,855
click242,125149,179-92,946
kim128,05237,182-90,870
date190,506103,435-87,071
xn--ses554g192,076142,906-49,170
pink40,4677,838-32,629
property42,31413,187-29,127
blue41,54413,386-28,158
webcam86,92958,928-28,001
work100,76376,099-24,664
flowers26,0352,429-23,606
link396,611375,021-21,590
ninja54,65835,671-18,987
pics32,87014,907-17,963
xn--rhqv96g22,0245,271-16,753
cricket42,73626,192-16,544
black22,1515,888-16,263
audio24,5929,396-15,196
diet19,3214,164-15,157
lol95,11580,157-14,958
xn--3ds443g65,21750,628-14,589
bar20,1836,611-13,572
ooo18,9317,047-11,884
christmas15,5673,696-11,871
help53,17642,485-10,691
rest12,9222,768-10,154
blackfriday12,3932,288-10,105
hosting16,2306,461-9,769
news76,11966,754-9,365
love27,38418,125-9,259
fans17,9658,810-9,155
ink26,07017,896-8,174
xn--fiq228c5hs47,39340,289-7,104
faith60,04554,142-5,903
hiphop7,6221,934-5,688

At the opposite end of the table, the biggest gainers over the 12-month period were .xyz, .loan, .top, .online, .men, .tech, .kiwi, .club, .site and .bid.

Those 10 TLDs all saw volumes increase by over 100,000 names.

But that’s not necessarily hugely encouraging news, for various reasons.

We already know that .xyz is set to lose millions of names over its next couple of monthly registry reports.

One could guess that the peaks in Famous Four strings .bid, .loan and .men are likely to be matched by troughs before long.

.kiwi appears to be on the list due to its waiving the fees on about 200,000 domains, under a deal with a registrar last year.

.club recently said that it only expects to get 10% to 15% renewals on about 700,000 of its million total names.

Finally, .top is widely thought of as the TLD of choice for throwaway spam domains and has already lost a couple million names since June.

Here’s the top 30 gainers from my list:

TLDMay 2016 DUMMay 2017 DUMChange
xyz2,896,9835,995,2923,098,309
loan240,6422,132,8951,892,253
top2,494,4073,876,1081,381,701
online305,700749,097443,397
men14,904299,996285,092
tech132,507339,503206,996
kiwi10,997202,234191,237
club790,903980,327189,424
site405,596535,321129,725
bid363,751470,107106,356
win935,6091,030,09994,490
website178,863268,70989,846
space178,852265,07486,222
trade82,215161,11078,895
racing61,553135,02073,467
life38,813105,90667,093
accountant48,135111,04862,913
live47,42599,98852,563
host26,91865,55438,636
world29,99961,07931,080
download72,39899,90127,503
xin326,320353,63927,319
design43,53368,60025,067
city22,79344,83722,044
today53,72275,15821,436
press35,07955,92820,849
studio11,44029,73518,295
solutions52,15669,62817,472
email58,23670,53612,300
sale11,17422,77711,603

For the survey, I selected only new gTLDs from the 2012 round that had general availability dates in 2015 or earlier. I excluded any gTLD with Specifications 9 or 13, which act as a dot-brand flag, in their ICANN contract.

The 436 resulting TLDs include both wide-open, commercially available namespaces such as .link and .xyz, and the more restricted zones such as .bank and .law.

Domain growth flat in Q2

Kevin Murphy, September 18, 2017, Domain Registries

Growth in the volume of registered domain names was exactly the same in the second quarter as it was in the first.

That’s according to the latest Domain Name Industry Brief, published by Verisign late last week.

Q2 closed with 331.9 million registered names, up 1.3 million or 0.4% sequentially. The Q1 DNIB published three months ago also showed net growth of 1.3 million names.

That’s an increase of 6.7 million names, 2.1%, over the second quarter 2016, which compares unfavorably to the first quarter’s annual growth of 11.8 million names.

A slight majority of the 1.3 million bump seems to have come from .com and .net, which together grew from 143.6 million to 144.3 million names, roughly a 700,000 name or 0.4% sequential increase.

ccTLDs fared a little better, going to to 144.2 million names from 143.1 million in Q1. That’s a 1.1 million increase.

New gTLDs took the edge off the overall industry growth, shrinking from 25.4 million names in Q1 to 24.3 million in Q2.

That’s largely due to the expiration of millions of speculative .xyz registrations that were given away for free or nearly free in 2016.

As anticipated, .xyz fell off the top 10 list of all TLDs to be replaced by 17-year-old .info, which added an impressive 300,000 names to wind up in the #9 spot ahead of flat Netherlands ccTLD .nl.

XYZ slashes $10 million a year from premium stash

Kevin Murphy, September 11, 2017, Domain Registries

XYZ.com has slashed the asking price of a few thousand “premium” .xyz domain names, in some cases by many thousands of dollars.

Overall, it looks like the company has dropped prices by a total of $10.8 million.

At the top end of its reserved list, several single and double-character domains previously priced a $55,000 per year have been reduced to $13,000 per year.

At the lower end, domains previously priced at around $1,300 are now around $300.

Those are the recommended retail prices. Some registrars are offering them with a substantial mark-up.

The reductions affect 2,700 of the domains on XYZ’s premium list, which runs to about 3,075 names in total.

Whereas the previous hypothetical value of the full list was $15.3 million a year, it’s now at $4.4 million a year.

Of course, they’re not worth anything unless somebody is willing to pay the price, and the domains still seem to have end-user price tags on them.

Premium renewal fees have so far proved unpopular in the domain investing community due to the large carrying cost.

XYZ’s full list can be obtained here.

CentralNic extends XYZ deal until 2032

Kevin Murphy, September 7, 2017, Domain Registries

CentralNic and XYZ.com have extended their registry services pact for the next fifteen years, according to CentralNic.

Announcing its first-half 2017 financial results today, CentralNic said the back-end contract has been extended until 2032.

It’s an unusually long duration for a registry services contract, which are usually much more likely to run about five years.

It even lasts 10 years beyond the expiration of XYZ.com’s own ICANN contracts (though renewal of these is a near-certainty).

The deal covers all .xyz domains, as well as all of the other TLDs in XYZ.com’s portfolio. That currently includes the likes of .rent, .storage and .college.

CentralNic said it “will receive a fixed fee based on the volume of .xyz registrations and subscriptions managed” under the new deal.

In a statement to the markets, CEO Ben Crawford said the relationship “has been updated to normalise the Company’s revenues and profits going forward.”

I believe the previous contract contained a per-domain component, which exposed CentralNic’s revenue to .xyz’s erratic pricing-influenced growth trajectory.

.xyz’s zone file has shrunk by a whopping four million domains since this time last year, causing it to lose the crown of highest-volume new gTLD, due to it offering free or almost free domains that expired without renewing after a year.

However, CentralNic disclosed that the proportion of its own wholesale transaction volumes that were renewals (rather than adds and transfers, I assume) was 18% in the first half, up from 2% in the same 2016 period.

For the six months ended June 30, the company had overall revenue of £10.6 million ($13.9 million), up 18.5% year over year.

Its net loss after tax was £619,000 ($810,000), down from £1.3 million. At the EBITDA level, profit was £1.4 million ($1.8 million) compared to $900,000 in H1 2016.

While I still stubbornly think of CentralNic as primarily a registry play, in fact the company now gets about three quarters of its revenue today from its retail registrar division, which contributed just shy of £8 million to the total in H1.

Instra, the Australian registrar it acquired at the end of 2015, contributed £5.83 million.

The wholesale division, registry back-end services — contributed £1.82 million to revenue and £450,000 to EBITDA in the half.

That’s despite CentralNic being the back-end for six of the top 20 new gTLDs by volume — .website, .space, .tech, .site, .online, and .xyz

If we tally up the number of domains in only those six TLDs, we get to about 4.2 million, per their zone files.

The company’s third reporting unit, Enterprise, contributed £800,000 ($1 million) in the half, of which £360,000 ($471,000) came from premium domain sales.

Google shifts 400,000 .site domains

Kevin Murphy, August 22, 2017, Domain Registries

Google has given away what is believed to be roughly 400,000 subdomains in Radix’s .site gTLD as part of a small business web site service.

Since its launch a couple of months ago, the Google My Business web site builder offering has been offering small businesses a free one-page site with a free third-level domain under business.site.

Google My Business also offers users the ability to upgrade to a paid-for second-level domain via its Google Domains in-house registrar.

Google the search engine indexes 403,000 business.site pages currently. Because each subdomain is limited to a single page, it is possible that the number of subdomains is not too far behind that number, Radix believes.

This means that business.site is likely almost as large as the .site gTLD itself, which currently has about 450,000 names in its zone file.

Given the rapid growth rate, it seems likely the subdomain will overtake the TLD in a matter of weeks.

According to Radix, business.site was purchased off of its registry reserved premium list. The sale price has not been disclosed.

It’s good publicity for the TLD, and merely the latest endorsement by Google of the new gTLD concept.

As well as being the registry for many new gTLDs, Google parent Alphabet uses a .xyz domain and its registrar uses a .google domain.