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PIR says it has no plans to raise .org prices

Public Interest Registry claims it has no plans to raise its wholesale fee for .org domains, in the face of outrage from domainers and non-profits.

Under a proposed renegotiated contract with ICANN, price caps that have limited PIR to a 10% price increase every year would be removed.

But in a statement last week, the company said:

Rest assured, we will not raise prices unreasonably. In fact, we currently have no specific plans for any price increases for .ORG. We simply are moving to the standard registry agreement with all of its applicable provisions that already is in place for more than 1,200 other top-level domain extensions.

This does not necessarily translate to a commitment to not raise prices, of course. PIR may have “no specific plans” today, but it may tomorrow.

Over 3,300 people and organizations filed comments with ICANN about the proposed removal of the price caps, almost all of them negative.

Comments came initially from domain investors, but they were soon joined by many non-profit .org registrants and others.

Most claimed that it was unfair to allow unlimited price increases in legacy, pre-2012 gTLDs such as .org, which can be seen more as a public trust.

PIR went on to point out in its letter that it has not raised its prices — believed to be still under $10 a year — for the last three years.

But it might be worth noting that senior management has changed in that period. Brian Cute left the CEO job a year ago and, after an interim caretaker manager, was replaced by Donuts alumnus Jon Nevett in December.

.org’s registration numbers have been dipping. Over the last three years, it’s dropped from a peak of 11.3 million to 10.6 million at the end of 2018.

But it’s also renegotiated its back-end contract with Afilias over that period, meaning it’s now paying millions less on technical running costs than it once was.

PIR also reiterates that, like many of its customers, it is also a non-profit that is not motivated by investors and share prices.

More than half of its profits go to fund the Internet Society, itself a non-profit organization.

“We are different. We are mission based and not every decision is a financial one; we are not just driven by the bottom line,” its statement says.

PIR says that registrants are also protected by the measure in all ICANN gTLD contracts that allows registrants to lock in prices for up to 10 years in the event of a price increase, and by the fact that .org operates in a competitive market.

Reasonable people can and do disagree on whether these are effective protections in a case like .org.

Non-coms say .org price cap should be RAISED

Kevin Murphy, April 30, 2019, Domain Registries

With the entire domain name community apparently split along binary lines on the issue of price caps in .org, a third option has emerged from a surprising source.

ICANN’s Non-Commercial Stakeholders Group has suggested that price caps should remain, but that they should be raised from their current level of 10% per year.

In its comments to ICANN (pdf), NCSG wrote that it would “not object to the price cap being raised by a reasonable level”, adding:

Rather than removing price caps from the agreement entirely, these should be retained but raised by an appropriate amount. In addition, this aspect of the contract should be subject to a review midway through the contract, based on the impact of the price changes on non-profit registrants.

The NCSG does not quote a percentage or dollar value that it would consider “reasonable” or “appropriate”.

The letter notes that Public Interest Registry, which runs .org, uses some of its registration money to fund NCSG’s activities.

The NCSG disagrees with the decision to remove price cap provisions in the current .org agreement. On the one hand, we recognize the maturation of the domain name market, and the need for Public Interest Registry to capitalize on the commercial opportunities available to it. Public Interest Registry, as a non-profit entity, supports many excellent causes (including, it is worth noting, the NCSG). On the other hand, as the home for schools, community organizations, open-source projects, and other non-profit entities that are run on shoestring budgets, this registry should not necessarily operate under the same commercial realities that guide other domains. Fees should remain affordable, with domains which are priced within reach of everyone, no matter how few resources they have. Consequently, we support leaving the price cap provisions in place. We would not object to the price cap being raised by a reasonable level.

Basically, the ICANN community group nominally representing precisely .org’s target market doesn’t mind prices going up, just as long as PIR doesn’t get greedy.

It’s slightly surprising, to me, to find NCSG on the middle ground here.

There are currently over 3,250 comments on the renewal of PIR’s registry contract with ICANN — coming from domainers, individual registrants, and large and small non-profit organizations — almost all of which are firmly against the removal of price caps.

The only comments I’ve been able to find in favor of the scrapping of caps came from the Business Constituency. Intellectual property interests had no opinion.

I don’t believe the registries and registrars stakeholder groups filed consensus comments, but Tucows did file an individual comment (pdf) objecting to the removal of caps.

Non-profits worth $2.6 billion a year say .org price caps should stay

Kevin Murphy, April 29, 2019, Domain Registries

Eight large US-based non-profits, several of them household names, have put their names to a letter demanding that Public Interest Registry should not be allowed to increase its .org registry fees beyond 10% a year.

Combined, these eight outfits have revenue of roughly $2.6 billion per year.

PIR’s fees are currently under $10 per domain per year. It has roughly 10.6 million names under management.

The organizations signing the letter are TV network C-SPAN, broadcaster NPR, conservation charity the National Trust for Historic Preservation, retired persons advocate the AARP, environmental groups the National Geographic Society, the Conservation Fund and Oceana, and disco legends YMCA of the USA.

In a joint letter, submitted as part of ICANN’s public comment period on the renewal of PIR’s .org contract, they write:

We agree with the current .org registry operator, the Public Interest Registry, that the .org gTLD “has assumed the reputation as the domain of choice for organisations dedicated to serving the public interest.” We have come to rely on this reputation to help distinguish the online presence of our organizations from the online presence of organizations that are not intended to serve the public interest. As nonprofit organizations, we also have come to rely on the certainty and predictability of reasonable domain name registration expenses when allocating our limited resources.

Sourced from Wikipedia and tax returns, here’s how much revenue these non-profits bring in per year:

  • NPR — $208 million (2016)
  • C-SPAN — $73.2 million (2014)
  • YMCA of the USA — $169.5 million (2017)
  • National Geographic Society — $188 million (2017)
  • AARP — $1.6 billion (2016)
  • The Conservation Fund — $238 million (2017)
  • Oceana — $53 million (2017)
  • National Trust for Historic Preservation — $62.9 million (2017)

Limited resources indeed.

The deadline for comments is midnight UTC tonight, about two hours from the dateline on this post.

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.

.CLUB announces three years of price increases

Kevin Murphy, January 15, 2019, Domain Registries

.CLUB Domains is to increase its wholesale registry fees by $1.90 over the next three years.

The company announced that the increases for .club names will come on July 1 this year, next year, and in 2021.

The current price is $8.05 per domain per year. This will go up to $8.95, then $9.45, then $9.95.

They’re the first price changes .CLUB has implemented, other than discounts, since its launch in 2014.

The gTLD had almost 1.5 million names under management at the last public count, and has about 1.16 million names in its zone file today.

It saw a growth surge in the second half of 2018 due to aggressive discounting in China — with AliBaba selling new names for as little as $0.44 — which led to a corresponding increase in abuse.

.CLUB is a rare example of a private TLD operator that is fairly open about its financials.

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