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.london disaster leads to mixed 2018 for MMX

New gTLD registry MMX, aka Minds + Machines, suffered a huge net loss in 2018, largely due to its disastrous .london contract, even while its operating fundamentals improved.

For the year, MMX reported a net loss of $12.6 million, compared to a 2017 profits of $3.8 million, on revenue up 5% to $15.1 million.

The loss was almost entirely attributable to charges related to an “onerous contract” with one of its partners.

MMX has never disclosed the identity of this partner, but the only outfit that fits the profile is London & Partners, the agency with which MMX partnered to launch .london several years ago.

The registry, expecting big things from the geo-TLD, promised to pay L&P millions over the term of the contract, which expires in 2021.

But it’s been a bit of a damp squib compared to former management’s expectations, peaking at about 86,000 regs last year and shrinking ever since.

MMX says the estimated gap between the minimum revenue guarantee payable to L&P and the expected revenue is expected to bring in before 2021, is $7.2 million.

It’s recorded this as a charge on its income statement accordingly, along with another $4.2 million impairment charge related to the same contract.

The company recorded a $7.7 million accounting charge related to this contract in 2016, too.

The company says that to date it has lost about $13.7 million on the deal.

These charges, along with a few other smaller one-off expenses, were enough to push the company into the black for 2018.

But other key performance indicators showed more promise, helped along by the acquisition last year of porn-themed registry operator ICM Register, best-known for .xxx.

Notably, renewal revenue almost doubled, up 97% to $9.4 million.

Domains under management was up 37% to 1.81 million.

Operating EBITDA was $3.6 million, up 12.5%.

Looking ahead, MMX said billings for the first quarter are expected to be up 246%, due to the first impact of the ICM acquisition.

It also said it closed $500,000 of sales in .law in China in March. That would work out to over 5,000 domains, based on the retail price of about $100 a year, but those domains have yet to show up in the .law zone file, which only grew by about 200 domains last month.

MMX said it is planning to launch “a high-value defensive registration product” for corporate registrars by the third quarter.

If I had to guess, I’d say that is probably a clone of Donuts’ Domain Protected Marks List service, which offers trademark owners deep discounts when they defensively block strings across the whole Donuts gTLD portfolio.

It’s a model copied by other registries, including recently Uniregistry.

Donuts raises prices on most TLDs by up to 9%

Portfolio registry Donuts is to jack up prices on most of its 241 gTLDs by up to 9% later this year.

Base-rate price increases of between 6% and 9% will his 220 TLDs, while 16 will remain at their current pricing.

The increases, which do not affect registry-reserved “premium” domains, will likely mean an increase of a few dollars in most cases.

(UPDATE: Donuts says the average price increase is about $1.75.)

Five gTLDs will see their prices reduced. Donuts said .group will see a 35% price reduction. It currently sells for about $30 a year at GoDaddy.

The prices were announced to registrars yesterday and, due to ICANN rules, will not come into effect until October 1.

Registrants are able to lock in their current pricing for up to 10 years by renewing before that deadline.

.com outsells new gTLDs by 2:1 in 2018

The number of registered .com domains increased by more than double the growth of all new gTLDs last year, according to figures from Verisign.

The latest Domain Name Industry Brief reports that .com grew by 7.1 million names in 2018, while new gTLDs grew by 3.2 million names.

.com ended the year with 139 million registered names, while the whole new gTLD industry finished with 23.8 million.

It wasn’t all good news for Verisign, however. Its .net gTLD shrunk by 500,000 names over the period, likely due to the ongoing impact of the new gTLD program.

New gTLDs now account for 6.8% of all registered domains, compared to 6.2% at the end of 2017, Verisign’s numbers state.

Country codes fared better than .com in terms of raw regs, growing by 8.2 million domains to finish 2018 with 154.3 million names.

But that’s including .tk, the free ccTLD where dropping or abusive domains are reclaimed and parked by the registry and never expire.

Excluding .tk, ccTLDs were up by 6.6 million names in the year. Verisign estimates .tk as having a modest 21.5 million names.

The latest DNIB, and quarterly archives, can be downloaded from here.

Registry offers “$2,500” in sweeteners for .inc registrants

Kevin Murphy, March 27, 2019, Domain Registries

The newly launching .inc gTLD may be eye-wateringly expensive, but the registry is offering a package of incentives it reckons adds up to a $2,500 value to new registrants.

Intercap Registry’s .inc went into sunrise today. It’s expected to have retail price of $2,000 and up when it goes to general availability May 7. Sunrise registrants can expect to pay a couple thousand more.

Given the high price, and the fact that many businesses that end in “Inc” will likely view it primarily as an opportunity to waste yet more cash on defensive registrations, I’ve always been a bit skeptical of this particular gTLD.

But I’ve got to give the registry credit for at least making an effort to bump up its value proposition.

It’s currently listing 17 freebies, provided mostly by partners, that new .inc registrants can cash in to soften the dent in their wallets.

Registrants can get a free business formation package from LegalZoom and a free press release announcing their new business issued on GlobalNewsWire, for example. Together, that’s worth over a grand, Intercap says.

Most of the other benefits on offer are discounts on services such as telephony, shared office space, printing, accounting, payment processing and advertising services. Some require additional spending before they can be cashed in.

Partners include Google, Ting, Delta Airlines, Vistaprint and Quickbooks. Some of the offers look like typical affiliate marketing deals.

I imagine different registrants will find different benefits appealing. Some may use none at all. Intercap says more sweeteners will be added in future.

The registry says that its high pricing is there to deter cybersquatters. I imagine this will be successful to a large extent, but that it will probably attract a healthy defensive registration business also.

Another dot-brand bites the dust

Kevin Murphy, March 21, 2019, Domain Registries

Honeywell International, a $40-billion-a-year US conglomerate, has become the last major company to dump its dot-brand gTLD.

The company informed ICANN in February that it no longer wishes to run .honeywell, and ICANN yesterday published its preliminary decision not to transition the TLD to a new owner.

Honeywell never used .honeywell, which has been in the DNS root since June 2016, beyond the contractually mandated placeholder at nic.honeywell.

It becomes the 46th new gTLD registry to request a termination since 2015. Almost all have been dot-brands.

The company’s request is open for public comment until April 14. To date, there have been no public comments on any voluntary registry termination.

Honeywell is involved in the aerospace, building and consumer goods sectors. It has 130,000 employees and reported revenue of $40.5 billion for 2018.

It’s the first new gTLD termination request of 2019.

UDRP complaints hit new high at WIPO

Kevin Murphy, March 19, 2019, Domain Policy

The World Intellectual Property Organization handled 3,447 UDRP cases in 2018, a new high for the 20-year-old anti-cybersquatting policy.

The filings represent an increase of over 12% compared to the 3,074 UDRP cases filed with WIPO in 2017. There were 3,036 cases in 2016

But the number of unique domains complained about decreased over the same period, from 6,370 in 2017 to 5,655 domains in 2018, WIPO said today.

The numbers cover only cases handled by WIPO, which is one of several UDRP providers. They may represent increases or decreases in cybersquatting, or simply WIPO’s market share fluctuating.

The numbers seem to indicate that the new policy of redacting Whois information due to GDPR, which came into effect mid-year, has had little impact on trademark owners’ ability to file UDRP claims.

UPDATE: This post was updated a few hours after publication to remove references to the respective shares of the UDRP caseload of .com compared to new gTLDs. WIPO appears to have published some wonky math, as OnlineDomain noticed.

Rumors swirl as AlpNames suffers “days” of downtime

Kevin Murphy, March 12, 2019, Domain Registrars

The web site of controversial registrar AlpNames has been offline for “days”, and rumors have started to circulate that it might not just a technical problem.

At time of writing, alpnames.com resolves to a Cloudflare error page, warning that the AlpNames web server has an invalid SSL certificate. Cloudflare may also show an ugly, bare-bones cached version of the site.

This means that AlpNames customers are unable to log in to manage their domains, according to threads on Namepros and Reddit, and conversations I’ve had with some of those affected.

It’s said that customers are able to manage their domains by logging in directly to LogicBoxes, AlpNames’ registrar-in-a-box provider, but I’ve been unable to personally verify this.

AlpNames is believed to have almost 700,000 names under management, double the size it was last June but well below its peak, at the height of its deep-discounting period in 2017, of over three million.

It’s not known how many individual registrants are affected. The company tends to attract what one might charitably call “bulk-buyers”, so it will be substantially lower than the number of registered domains.

It’s also not entirely clear when the web site went down. It’s not been loading here for at least 12 hours, but the first reference to downtime on Namepros was on Sunday. Multiple other sources have told me today that it’s been unavailable “for a few days”.

A separate AlpNames-owned web site focused on marketing .icu domains to the Chinese market is still online.

But it seems a lot of AlpNames customers have been left hanging in uncertainty, unsure how or when they will be able to manage their domains.

I’ve been unable to reach any of AlpNames’ senior executives for comment on the situation today.

An email sent to CEO Iain Roache this morning, at the address he was using in December, bounced back with a “disabled account” error message. I have received no response to messages I sent to two other email addresses he is known to use.

I understand that fellow AlpNames exec Geir Rasmussen who, with Roache, was enthusiastically pitching grand plans for AlpNames as recently as October, is no longer with the company.

Chief operating officer Damon Barnard also left the company last October and ceased work as a director around the same time.

Records show the salesperson due to represent AlpNames at this week’s ICANN 64 meeting in Japan did not show up and is believed to have also left the company in January.

The company’s Twitter and Facebook accounts, which are not usually particularly active anyway, have not yet addressed the downtime problem.

If it is simply a case of an expired or misconfigured SSL cert, why is it taking so long to fix, and why has there been radio silence from AlpNames?

Opponents and competitors are putting the word around that there may be a more serious problem with the company, but I’ve not seen any conclusive evidence that this is the case.

It’s possible there’s some confusion between AlpNames and Famous Four Media, the now-defunct Roache/Rasmussen venture that managed the portfolio of new gTLDs owned by Domain Venture Partners, an investment vehicle set up by Roache prior to ICANN’s 2012 gTLD application round.

DVP is no longer affiliated with AlpNames and its gTLDs are managed by a new DVP-controlled entity, GRS Domains, after an investor revolt.

ICANN plays tough over Amazon dot-brands

Kevin Murphy, March 12, 2019, Domain Policy

ICANN has given Amazon and the governments of the Amazon Cooperation Treaty Organization less than a month to sort out their long-running dispute over the .amazon gTLD.

The organization’s board of directors voted on Sunday to give ACTO and the e-commerce leviathan until April 7 to get their shit together or risk not getting what they want.

But both parties are going to have to come to an agreement without ICANN’s help, with the board noting that it “does not think that any further facilitation efforts by ICANN org will be fruitful”.

Attempts by ICANN to meet with ACTO over the last several months have been agreed to and then cancelled by ACTO on at least two separate occasions.

The eight ACTO governments think the string “Amazon” more rightfully belongs to them, due to it being the English name for the rain forest region they share.

Amazon the company has promised to safeguard culturally sensitive terms in .amazon, to assist with future efforts to secure .amazonas or similar for the Amazonian peoples, and to donate services and devices to the nations concerned.

Now, the two parties are going to have to bilaterally decide whether this deal is enough, whether it should be sweetened or rejected outright.

If they can’t come to a deal by ICANN’s deadline (which could be extended if Amazon and ACTO both ask for more time), ICANN will base its decision on whether to approve .amazon based on how Amazon unilaterally proposes to address ACTO’s concerns.

While a rejection of the .amazon application is still on the table, my read is that this is a bigger win for Amazon than it is for ACTO.

Radix sees revenue up 30%

Kevin Murphy, March 12, 2019, Domain Registries

New gTLD registry Radix said today that its revenue increased by 30% in 2018, largely due to an end-of-year boost.

The company, which runs nine gTLDs including .online and .site, said that gross revenue was $16.95 million last year.

It added that net profit was up 45.6%, but the privately held company does not actually disclose the dollar value of its bottom line.

Radix said that the fourth quarter of the year, which presumably saw the benefits of Operation September Thrust, was its strongest quarter.

The company said that 27% of its revenue came from standard-price new registrations and 60% from renewals.

Its premiums brought in $1.9 million, 56% of which were premium renewals.

Donuts founder replaces Pitts as MMX’s premium guru

MMX has hired one of Donuts’ recently departed co-founders to market its premium domain name inventory, the company said today.

Dan Schindler, formerly Donuts’ executive VP, has been hired as a “special advisor”, tasked with “monetizing” premiums in the US and Europe.

He appears to be functionally replacing Victor Pitts, who was hired as director of premium sales two years ago. Pitts appears to have left the company in January.

MMX, which counts .vip, .law and .luxe among its stable of 32 gTLDs, expects to report premium sales for 2018 of around $2.3 million.

The company has also hired domain consultant Christa Taylor, founder and CEO of dottba, as its new chief marketing officer, a newly created position.

News of the appointments was released as MMX published another preliminary trading update ahead of its final 2018 financial results next month.

Here are some more nuggets from the announcement:

  • Total domain registrations so far in 2019 up 38% to 1.84 million compared to a year ago.
  • Billings up 129% year-on-year due to contributions from ICM Registry and a 40% increase in sales of .vip and .luxe domains in China.
  • ICM’s porn-themed domains are renewing at 91%.
  • Integration of .luxe into two more blockchain platforms — NameCoin and XAYA — is underway.

MMX expects to announce its full-year results April 3.