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Numeric .xyz names plummet despite dollar deal

Kevin Murphy, December 7, 2017, Domain Registries

XYZ.com’s effort to sell over a billion numeric .xyz domains at just $0.65 each does not appear to be gaining traction.

The number of qualifying domains in the .xyz zone file has plummeted by almost 200,000 since the deal was introduced and dipped by over 4,000 since the blanket discount went live.

The $0.65 registry fee applies to what XYZ calls the “1.111B Class” of domains — all 1.111 billion possible six, seven, eight and nine-digit numeric .xyz domains.

These domains carry a recommended retail price of $0.99.

It’s not a promotional price. It’s permanent and also applies to renewals.

Some registrars opted to start offering the lower price from June 1, but it did not come into effect automatically for all .xyz registrars until November 11

The number of domains in this class seems to be on a downward trend, regardless.

There were 272,589 such domains May 31, according to my analysis of .xyz zone files, but that was down to 74,864 on December 5.

On November 10, the day before the pricing became uniform, there were 78,256 such domains. That shows a decline of over 4,000 domains over the last four weeks.

It’s possible that the 1.111B offer is attracting registrants, but that their positive impact on the numbers is being drowned out by unrelated negative factors.

The period of the 200,000-name decline coincides with the massive mid-July junk drop, in which .xyz lost over half of its total active domains due to the expiration of domains registered for just a penny or two in mid-2015.

Many of those penny domains were numeric, due to interest from speculators from China, where such names have currency.

The period also coincides with a time in which XYZ was prohibited from selling via Chinese registrars, due to a problem changing its Real Names Verification provider.

In recent marketing, XYZ has highlighted some interesting uses of 1.111B domains, including a partnership with blockchain cryptocurrency Ethereum.

Other registrants are using the domains to match important dates and autonomous system numbers.

China and cheapo TLDs drag down industry growth — CENTR

Kevin Murphy, November 27, 2017, Domain Registries

The growth of the worldwide domain industry continued to slow in the third quarter, according to data out today from CENTR.

There were 311.1 million registered domains across over 1,500 TLDs at the end of September, according to the report, 0.7% year-over-year growth.

CENTRThe new gTLD segment, which experienced a 7.2% decline to 20.6 million names, was the biggest drag.

But that decline is largely due to just two high-volume, low-price gTLDs — .xyz and .top — which lost millions of names that had been registered for pennies apiece.

Excluding these TLDs, year-over-year growth for the whole industry would have been 2.5%, CENTR said. The report states:

Over the past 2 years, quarterly growth rates have been decreasing since peaks in early 2016. The slowdown is the result of deletes after a period of increased investment from Chinese registrants. Other explanations to the slowdown are specific TLDs, such as .xyz and .top, which have contracted significantly.

The legacy gTLDs inched up by 0.2%, largely driven by almost two million net new names in .com. In fact, only five of the 17 legacy gTLDs experienced any growth at all, CENTR said.

In the world of European ccTLDs, the average (median) growth rate has been flat, but CENTR says it sees signs of a turnaround.

CENTR is the Council of European National Top-Level Domain Registries. Its Q3 report can be downloaded here (pdf).

.xyz back on sale in China

Kevin Murphy, September 25, 2017, Domain Registries

Chinese registrars have started to carry .xyz domains again, about five months after a Chinese government ban.

West.cn and Net.cn are two of the China-based companies that appear to be selling .xyz names at the yuan equivalent of a US dollar, based on a spot check this morning.

West.cn flagged the “restoration” of service on its blog today, saying it was “overjoyed” to resume sales.

XYZ.com revealed back in May that its new gTLD domains were “temporarily” no longer available via Chinese registrars, after the government there suspended its license.

The reason for the suspension has always been a little vague, but the registry told DNW back in May that it related to Real Names Verification.

RNV is the government-mandated identity check that must take place before anyone in China can register and use a domain name.

XYZ had been outsourcing the function to ZDNS, but that relationship fell apart for some reason (rumor has it there was a money dispute) and XYZ decided to switch to Tele-info.

In the interim, Chinese registrars, apparently under order of their government, dutifully stopped carrying .xyz domains.

XYZ also went through ICANN’s Registry Services Evaluation Process to get its move to Tele-info approved at the Registry Agreement level.

The downtime prevented XYZ from masking the precipitous decline in its number of domains under management, which has fallen by over three million since May.

XYZ and the Chinese government have yet to issue statements about the newly reinstated license.

UPDATE 10/10/2017 — XYZ.com got in touch last week to say that .xyz was never “banned” in China.

A spokesperson said in an email: “We had RNV in place with ZDNS and opted to switch. To be compliant with ICANN, we suspended registrations in China.”

He declined to clarify whether the suspension was voluntary or ICANN-mandated.

He also declined to confirm or deny that Chinese registrars been told to suspend .xyz registrations by the government, as local sources have previously told DI and Domain Name Wire.

Other gTLDs owned by other registries have previously obtained Chinese licenses without ICANN first approving their RNV providers.

Okay, pedants, only 36% of new gTLDs are shrinking

Kevin Murphy, September 19, 2017, Domain Registries

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

According to numbers culled from zone files, 156 of the 435 commercial gTLDs we looked at had fewer domains yesterday than they did a year earlier.

On the bright side, that means the majority of them are still growing, but…

You: Wait, Kev, didn’t you write this exact same story yesterday, but said that 40% of new gTLDs were shrinking? Why are you now saying it’s 36%?

Me: People in the comments and on social media complained that I’d used domains under management (DUM) from May’s registry transaction reports — the most recent available — to collate the data yesterday, rather than more recent but less accurate zone files.

You: Why did they complain?

Me: I think because the May numbers show .xyz gaining on an annual basis, and yet everyone and his grandmother knows that .xyz’s numbers dropped off a cliff in July.

Your Grandmother: It’s true, they did. They lost millions…

You: Shut up, Gran. So, Kev, presumably if you do the same survey again, using the same TLDs, but use zone file data from this week instead, you’ll discover that the number of shrinking TLDs is far greater than 40%?

Me: Why would you presume that?

You: Because I also hate new gTLDs in general, not just .xyz specifically.

Me: Actually, the number of shrinking new gTLDs turns out to be smaller.

You: How come?

Me: Because only 36% of the gTLDs I surveyed had fewer numbers in their September 18, 2017 zone file than they did in their September 18, 2016 zone file.

You: So you actually over-reported the shrinkage in your first post? How come? I thought you were a shameless stooge of the new gTLD industry.

Me: I get that a lot.

You: Is .xyz at least on the list of biggest losers now?

Me: It is. Right at the top.

You: Good. I really fucking hate .xyz. What else changed? Stands to reason that some losers first time around are now gainers.

Me: Correct. Famous Four Media’s .party, for example, was a top 10 loser in the report comparing May 2016 DUM to May 2017 DUM, losing over 100,000 names, but it’s a top 10 gainer in the September-September zone file report, adding 85,000.

You: Explain.

Me: Well, .party’s reg numbers fell off a cliff in July 2016, and were still pretty depressed a year ago, but have since regained ground, presumably due to them costing less than a pack of gum.

You: Got it. Any others?

Me: It’s a similar story for .webcam, .work, .bar, .audio, .rest and a few others. They all shrunk May-May but gained September-September.

You: So, in summary, the new gTLD industry isn’t as unhealthy as you made out on Monday?

Me: Maybe. To be honest I don’t think the disparity between 36% and 40% makes a whole lot of difference. It’s still quite a lot of TLDs growing in the wrong direction. At one time, that kind of thing was virtually unheard of.

You: True dat.

Me: Anyway, can I get back to my blog post now?

You: Sure. Just don’t expect me to read to the end.

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.