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Rightside new gTLD renewals can top 80%

Kevin Murphy, October 14, 2016, Domain Registries

Rightside says it is seeing encouraging renewal figures from its oldest batch of new gTLDs.

The company this week revealed that renewals after two years of ownership on average stand at 81%.

In a blog post, Rightside broke out some numbers for .dance, .democrat, .ninja, .immobilien, .social, .reviews and .futbol.

Those seven are the only ones in its portfolio to have gone through two full renewal cycles.

The renewal rate after year one was a modest 69% — in other words it lost almost a third of its installed base after 12 months — but this increased to 81% after the second year.

The actual number of domains involved in quite tiny — 81% equates to just 21,000 names across all seven TLDs.

Breaking out a couple of TLDs, Rightside wrote:

Our first gTLD to market, .DANCE, saw a 70% renewal rate in year one expand to 83% in year two for that same subset of domains. Our best performing gTLD of the seven is .IMMOBILIEN, which renewed at 83% in its first year, and grew to a stupendous 87% in its second—which certainly makes sense given the permanent nature of real estate.

But Rightside reckons the numbers reflect well on the new gTLD industry. It said:

domain investors with portfolios including new gTLDs recognize the long-term value of these domain names, and rather than let them drop after the first year, are holding onto them to find the right buyer continue to earn parking revenue. Second—and likely the more significant driver—is that end users are actually picking up these domain names and putting them to use.

.xxx to get lower ICANN fees, accept the URS

Kevin Murphy, October 14, 2016, Domain Registries

ICM Registry has negotiated lower ICANN transaction fees as part of a broad amendment to its Registry Agreement that also includes new trademark protection measures.

The company’s uniquely high $2 per-transaction fee could be reduced to the industry standard $0.25 by mid-2018.

As part of the renegotiated contract, ICM has also agreed to impose the Uniform Rapid Suspension policy on its registrants.

URS is the faster, cheaper version of UDRP that allows trademark owners to have domain names suspended in more clear-cut cases of cybersquatting.

The $2 fee was demanded by ICANN when ICM first signed its RA in 2011.

At the time, ICANN said the higher fee, which had doubled from a 2010 draft of the contract, was to “account for anticipated risks and compliance activities”.

The organization seemed to have bought into the fears that .xxx would lead to widespread misuse — something that has noticeably failed to materialize — and was expecting higher legal costs as a result.

The companion TLDs .adult, .porn and .sex, all also managed by ICM, only pay $0.25 per transaction.

The overall effects on registrants, ICANN and ICM will likely be relatively trivial.

With .xxx holding at roughly 170,000 domains and a minimal amount of inter-registrar transfer activity, ICM seems to be paying ICANN under $400,000 a year in transaction fees at the moment.

Its registry fee is usually $62, though a substantial number of domains have been sold at lower promotional pricing, so the cost to registrants is not likely to change a great deal.

The reduction to $0.25 would have to be carried out in stages, with the earliest coming this quarter, and be reliant on ICM keeping a clean sheet with regards contract compliance.

Under the deal, ICM has agreed to adopt many of the provisions of the standard Registry Agreement for 2012-round gTLDs.

One of those is the URS, which may cause consternation among domainers fearful that the rights protection mechanism may one day also find its way into the .com registry contract.

ICM has also agreed to implement its existing policies on, for example, child abuse material prevention, into the contract as Public Interest Commitments.

The RA amendment is currently open for public comment at ICANN.

NameCheap stops selling .xyz domains

Kevin Murphy, October 11, 2016, Domain Registrars

NameCheap may have sold over a million .xyz domains, but apparently it will sell no more than that.

The registrar confirmed to DI this evening that it is no longer taking .xyz registrations. It declined to explain why.

It has also stopped selling .college and .rent domains — two other gTLDs owned by XYZ.com. Other new gTLDs are not affected.

It’s reportedly not accepting inbound transfers either, though existing domains can be renewed.

The switch-off happened at the end of last month, a NameCheap representative said.

That’s just one month after the registrar celebrated its one millionth .xyz registration, which XYZ.com commemorated with a blog post bigging up NameCheap’s user-customers.

The move is peculiar indeed. NameCheap is the third highest-volume .xyz registrar, behind West.cn and Uniregistry, responsible for about 15% of .xyz’s domains under management.

It’s also NameCheap’s biggest direct-selling gTLD by a considerable margin.

NameCheap is well-known as primarily an eNom reseller — it accounts for 28% of eNom’s domains under management and 18% of its revenue, largely from .com sales.

But with new gTLDs it has started selling domains on its own IANA ticker, meaning a direct connection to the registry and more gross profit for itself.

According to June’s registry reports, the million .xyz names accounted for roughly two thirds of NameCheap’s total DUM (not counting names sold via eNom).

The closet rival in its portfolio is .online, which provided the registrar with about 81,000 DUM.

The registrar added about 350,000 .xyz domains in June, a month in which it briefly offered them at $0.02 each.

At that time, the company reported technical issues that led to a 12-24 hour backlog of registrations to process, though its blog post announcing the problem appears to have since been deleted.

NameCheap has declined to comment on the reason for the surprise move, and XYZ did not immediately respond to a request for comment.

The fact that all of XYZ.com’s TLDs have been cut off suggests some kind of dispute between the two companies, but the fact that renewals can still be processed would suggest that NameCheap has not lost its .xyz accreditation.

More info if I get it…

XYZ hires .top guy as first China employee

Kevin Murphy, October 11, 2016, Domain Registries

XYZ.com has hired its first Beijing-based employee, as part of its ongoing plan to formally enter the Chinese market.

The company said yesterday that it has appointed Mason Zhang, until recently chief marketing office at .top gTLD registry Jiangsu Bangning Science & Technology Co, as its new director of business development for China.

It’s part of XYZ’s seemingly interminable entry to the Chinese market, which is over a year old.

While the majority of .xyz’s registrations have been into China, the registry (along with pretty much every other Western registry) still does not have the necessary government permissions so that its customers can start using their names.

It kicked off a process to get ICANN approval for its Chinese gateway, operated by ZDNS, a year ago, and set up the mandatory Wholly Owned Foreign Enterprise in January.

The company said in a blog post that it expects to get its Chinese accreditation “very soon”.

Zhang’s former employer, .top, is second only to .xyz in terms of new gTLD registration volume, also due to Chinese sales. It has about 3.7 million names in its zone file, compared to .xyz’s 6.1 million.

Root hits 1,500 live TLDs as US oversight ends

Kevin Murphy, October 4, 2016, Domain Registries

The DNS root saw its 1,500th concurrent live TLD come into existence on Friday, just hours before the US relinquished its oversight powers.

Amazon received its delegation for .通販 (.xn--gk3at1e, Japanese for “online shopping”) and satellite TV company Hughes got .dvr, meaning “digital video recorder”.

That took the number of TLDs in the root to exactly 1,500, which is where it still stands today.

Both went live September 30, which was the final day of ICANN’s IANA contract with the US National Telecommunications and Information Administration, which expired that night.

An ICANN spokesperson confirmed that the two new gTLDs “were the last ones requiring NTIA’s approval.”

From now on, the small clerical role NTIA had when ICANN wanted to make changes to the root is no more.

The fact that it hit a nice round number the same day as ICANN oversight switched to a community-led approach is probably just a coincidence.

Amazon’s .通販 was almost banned for being too confusingly similar to “.shop”, but that ludicrous decision was later overturned.

Hughes’ .dvr was originally intended as a single-registrant “closed generic”, but is now expected to operate as a restricted but multi-registrant space.