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Domain name industry growth slowed by China crackdown

The massive slump in Chinese domain name registrations appears to have hit the overall domain name market significantly in the first quarter 2010, slowing its growth.

According to the latest VeriSign Domain Name Industry Brief, only one million net new domains were registered across all TLDs in the period, a paltry 0.6% increase.

There were about 193 million domains active at the end of March, up from 192 million at the start of the year.

A million might seem like a lot, until you consider that the market grew by 11 million domains in the fourth quarter and by three million in the first quarter of 2009.

The slump is certainly due to the rapid decline in .cn domains.

China’s ccTLD had about 13.4 million names at the end of last year, and only 8.8 million at the end of March. April’s numbers show the decline continued, with 8.5 million names registered.

The China drag has been caused by a combination of pricing and the Draconian new identification requirements the communist government placed on the registry, CNNIC.

Chinese registrants now have to present photo ID before they can register a domain.

VeriSign’s own .com/.net business did a decent trade in the quarter, up 7% compared to the same quarter last and 2.7% on December to 99.3 million names in total.

With registrations growing by 2.7 million per month, this means VeriSign already has more than 100 million names in its com/net database.

Second-tier TLDs gain aftermarket traction

Kevin Murphy, May 4, 2010, Domain Sales

The average aftermarket selling price of domain names in second-tier TLDs is creeping up, according to the latest numbers from Sedo.

Sedo’s latest quarterly sales review shows that namespaces such as .biz, .info and .org are selling for far better money than they were a year ago.

In fact, the median selling price of .biz, .org, and .net domains is now higher than that of .com.

The price of .biz names, which only accounted for 1% of overall sales, has almost doubled in the last four quarters, up 97% at $537.

The .info namespace fared almost as well, recording a median price of $418, up 91% on the $219 recorded in the second quarter of 2009.

The long-established .org has also appreciated over the last 12 months. Its median price rose 45% to $550.

While there’s no doubt that .com is still where the high-end money is, the median price for a .com was only $510, a 24% increase over the same period.

Sedo has started reporting median prices because big one-off sales can have an impact on the mean averages it also reports.

Its full Q1 Domain Market Study report can be downloaded here.