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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).

CentralNic and .CLUB reveal premium sales

Kevin Murphy, November 8, 2017, Domain Services

CentralNic and .CLUB Domains have both revealed sales of premium domain names over the last several days.

CentralNic said yesterday that it has sold “a number” of premiums for $3.4 million.

The names are believed to be from its own portfolio, rather than registry-reserved names in any of the TLDs it manages. The company did not disclose which names, in which TLDs, it had sold.

The sale smooths out potential lumpiness in CentralNic’s revenue, and the company noted that the sales means that recurring revenue from its registrar and registry business will become an increasing proportion of its revenue as its premium portfolio diminishes.

Last week, .CLUB announced that it sold $380,793 of premium .club domains in the third quarter. That was spread over 452 domains.

The big-ticket domains were porn.club and basketball.club, sold by the registry for $85,000 together.

The Q3 headline number was a sharp decline from the Q2 spike of $2.7 million, which was boosted by auctions in China.

The company published a lot more data on its sales on its blog, here.

Eight more gTLDs get Chinese licenses

Kevin Murphy, October 12, 2017, Domain Registries

Radix and MMX have had four new gTLDs each approved for use in China.

MMX has had .work, .law, .beer and .购物 (Chinese for “shopping”) approved by the Ministry of Industry and Information Technology.

Radix gained approval for .fun, .online, .store and .tech.

The approvals mean that Chinese customers of Chinese registrars will be able to actually use domains in these TLDs rather than just registering them and leaving them barren.

It also means the respective registries have to apply more stringent controls on Chinese registrants.

They’re the first new gTLDs to get the nod from MIIT since April.

Only a couple dozen Latin-script new gTLDs have been given regulatory approval to operate fully in China.

MMX’s biggest success story to date, .vip, is almost entirely beholden to the Chinese market. Before today, it was also the only gTLD in its portfolio to pass the MIIT test.

The company said in a statement it has another four strings going through the approval process.

Radix already had .site on sale in China with government approval.

MMX revenue slips despite domain growth

Kevin Murphy, September 26, 2017, Domain Registries

MMX today posted a smaller loss for the first half of the year, despite managing to grow domains under management and hit some important financial milestones.

The new gTLD registry formerly known as Mind + Machines, which announced a few months ago that it’s looking to be acquired, reported an H1 loss of $526,000 compared to a loss of $1.9 million a year earlier.

Revenue and billings were both down due to the lack of any big launches in the period; H1 2016 had benefited from the strong launch of .vip in China.

Revenue, which is recognized over the duration of the domain registrations, was $5.3 million compared to $7.4 million in 2016. Billings, a measure of cash sales, were $5.6 million compared to $8.1 million.

Despite these dips, MMX is happy enough that the “quality” of its revenue is getting better.

The company said that revenue from domain renewals more than doubled to $2.4 million and represented 45% of revenue. A year ago, it was 15%.

As another measure of the health of its business, it also said that its renewal billings was greater than its operating expenditure for the first time, after cost-cutting.

Domains under management went into seven figures for the first time, to 1.1 million. That was up from 821,000 at the start of the year.

It processed 318,000 new registrations in the six months, compared to 452,000 a year earlier (when .vip’s launch provided a boost).

.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.