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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.

Domain growth slows a lot in Q1

The growth of the domain name industry slowed in the first quarter, numbers published today by Verisign reveal.

According to its latest Domain Name Industry Brief (pdf), the domain universe grew to 330.6 million in Q1.

That’s an increase of 1.3 million names on Q4 2016, a 0.4% sequential increase, and 11.8 million names, 3.7% growth, compared to Q1 2016.

In the Q4 DNIB, Verisign reported industry growth of 0.7% and 6.8% respectively.

The only change on the list of the top 10 TLDs was that .nl and .xyz switched places (.xyz is now in 10th place, with 5.6 million names, but this rank will not last long).

ccTLDs in general did not match the growth of the overall market. There were approximately 143.1 million ccTLD domains at the end of March, up 0.3% sequentially and 1.7% year over year, both substantially smaller numbers than reported in Q4.

The free ccTLD .tk, which has been responsible for huge swings in recent reports, is reported to have declined by about 100,000 names to 18.6 million.

Excluding .tk, the growth rate of ccTLDs was better — 0.5% sequentially and 3.9% compared to the year-ago quarter.

Verisign’s data is largely based on zone files for gTLDs and independent researcher ZookNic for ccTLDs.

Junk drop cuts .xyz in half, .top claims volume crown

The .xyz gTLD has seen its zone file halve in size, as millions of free and cheap domains were not renewed.

The former volume leader among new gTLDs started this month with a tad over 5.2 million domains in its zone.

But its July 17 zone contained 2.5 million, much less than half as many, DI analysis shows.

The precipitous decline means that Chinese-run gTLD .top, increasingly notorious as a go-to TLD for spammers, is now literally at the top of the league table, when you measure new gTLDs by zone file volume, with 2.6 million names.

The primary reason for .xyz losing so many names is of course the expiration of most of the domains that were sold for just $0.01 — or given away for free — in the first few days of June 2016, and the aggressive promotional pricing on offer for the remainder of that month.

On May 30, 2016, there were just under 2.8 million names in the .xyz zone. By July 1, 2016, that number had topped 6.2 million, an increase of 3.4 million over a single month.

That was .xyz’s peak. The zone has been in gradual decline ever since.

Domains generally take 45 days to drop, so it’s entirely possible XYZ.com will see further losses over the next month or so.

There’s nothing unusual about seeing a so-called “junk drop” a year after a TLD launches or runs a free-domains promotion. It’s been well-understood for over a decade and has been anticipated for .xyz for over a year.

But compounding its problems, the .xyz registry appears to still be banned in China, where a substantial portion of its former customer base is located.

The company disclosed over two months ago that it had a “temporary” problem that had seen its license to sell domains via Chinese registrars suspended.

The ban was related to XYZ falling out with its original “real name verification” provider, ZDNS, which was tasked with verifying the identities of Chinese registrants per local government regulations.

I’ve never been able to confirm with either party the cause of this split, but everyone else involved in the Chinese market I’ve asked has told me it related to a dispute over money.

Regardless, two months later the major Chinese registrars I checked today still appear to not be carrying .xyz names.

XYZ has meanwhile signed up with alternative Chinese RNV provider Tele-info, and just three days ago submitted the necessary paperwork (pdf) with ICANN to have the move approved as a registry service under its contract.

In that request, XYZ said the new RNV service “will allow XYZ to reenter certain domain name markets”, suggesting that it has not yet regained Chinese government approval to operate there.