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Have your say on single-character .com domains

ICANN wants your opinion on its plan to allow Verisign to auction off o.com, with a potential impact on the future release of other single-character .com domain names.

The organization has published a proposed amendment to the .com registry contract and opened it for public comment.

The changes would enable Verisign to sell o.com, while keeping all other currently unallocated single-character names on its reserved list.

The company would not be able to benefit financially from the auction beyond its standard $7.85 reg fee — all funds would be held by an independent third-party entity and distributed to undisclosed non-profit causes.

The arrangement would also see the buyer pay a premium renewal fee of 5% of the initial outlay, doubling the purchase price over the course of 25 years.

They would not be able to resell the domain without selling the registrant company itself.

It’s a pretty convoluted system being proposed, given that there may well end up only being one bidder.

Overstock.com, the online retailer, has been pressuring ICANN and Verisign to release o.com for well over a decade, and the proposed auction seems to be a way to finally shut it up.

The company has a US trademark on O.com, so any other bidder for the name would probably be buying themselves a lawsuit.

The proposed auction system does not address trademark issues — there’s no sunrise period of trademark claims period.

One party already known to be upset about lack of rights protection is First Place Internet, a search engine company that has a US trademark on the number 1.

It told ICANN (pdf) back in January that the o.com deal would “set a dangerous precedent” for future single-character name releases.

The ICANN public comment period, which comes after ICANN received the all-clear from US competition regulators, closes June 20.

As a matter of disclosure, several years ago I briefly acted as a consultant to a third party in support of the Verisign and Overstock positions, but I have no current interest in the situation one way or the other.

.com adds 5.5 million names, renewals back over 70%

Kevin Murphy, April 30, 2018, Domain Registries

Verisign reported first-quarter financial results that reflected a healthier .com namespace following the spike caused by Chinese speculation in 2016.

The company Friday reported that .com was up to 133.9 million domains at the end of March, an increase of 5.5 million over the year.

The strong showing was tempered slightly by a further decline in .net, where domains were down from 15.2 million to 14.4 million.

Over the quarter, there was a net increase of 1.9 million names across both TLDs and the renewal rate was an estimated 74.9%, a pretty damn good showing.

Actual renewals for Q4, measurable only after Verisign announced its earnings, were confirmed at 72.5%, compared to a worryingly low 67.6% in Q4 2016.

In a call with analysts, CEO James Bidzos confirmed that the turnaround was due to the surge in Chinese domainer speculation that drove numbers in 2016 finally working its way out of the system.

In Q1, the cash-printing company saw net income of $134 million, compared to $116 million a year earlier, on revenue up 3.7% at $299 million.

Bidzos told analysts that it’s “possible” that the company may get to launch .web in 2018, but said Verisign has not baked any impact from the contested gTLD into its forecasts.

Industry report show slightly stronger growth than Verisign’s

The latest domain name industry growth figures from CENTR show slightly better performance than a recent report from Verisign covering the same period.

CENTR says in its latest DomainWire Global TLD Report there were 331.1 million registered domains at the end of 2017, whereas Verisign, in its Domain Name Industry Brief last month, put that at 332.4 million domains.

But CENTR’s figures show growth of 1.2% compared to the end of 2016, a figure Verisign put at 0.9%.

The CENTR report shows growth in ccTLDs offset by a 0.4% decline in gTLD registrations. The drag factors for gTLDs were largely .net, .xyz and .top.

CENTR and Verisign use mostly the same sources for their data — published zone files for gTLDs and cooperative ccTLDs, and independent researcher Zooknic to plug the gaps — but they vary in how they calculate their growth numbers.

For example, Verisign said .com ended the year with 131.9 million names, but CENTR puts that number at 130.4 million. It looks to me like Verisign counts registered domains that do not appear in the .com zone file to get to its total.

In addition, CENTR excludes dot-brand gTLDs, gTLDs with fewer than 500 domains, and ccTLDs that do not provide reliable quarter-to-quarter data from its calculations.

The CENTR report can be downloaded here.

Domain universe grows almost 1% in 2017 despite new gTLD slump

Kevin Murphy, February 16, 2018, Domain Registries

The total number of registered domain names in all TLDs was up 0.9% in 2017, despite a third-quarter dip, according to the latest data compiled by Verisign.

The latest Domain Name Industry Brief, published yesterday, shows that there were 332.4 million domains registered at the end of the year.

That’s up by 1.7 million names (0.5%) on the third quarter and up 3.1 million names (0.9%) on 2016.

Growth is growth, but when you consider that 2015-2016 growth was 6.8%, under 1% appears feeble.

The drag factors in 2017 were of course the 2012-round new gTLDs and Verisign’s own .net, offset by increases in .com and ccTLDs.

New gTLD domains were 20.6 million at the end of the year, down by about 500,000 compared to the third quarter and five million names compared to 2016.

As a percentage of overall registrations, new gTLDs dropped from 7.8% at the end of 2016 to 6.2%.

The top 10 new gTLDs now account for under 50% of new gTLD regs for the first time.

The numbers were primarily affected by big declines in high-volume spaces such as .xyz, which caused the domain universe to actually shrink in Q3.

Verisign’s own .com fared better, as usual, with .net suffering a decline.

The year ended with 131.9 million .com names, up by five million names on the year, exactly offsetting the shrinkage in new gTLDs.

But .net ended up with 14.5 million names, a 800,000 drop on 2016.

In the ccTLD world, total regs were up 1.4 million (1%) quarterly and 3.4 million (2.4%) annually.

Excluding wild-card ccTLD .tk, which never deletes domains and for which data for 2017 was not available to Verisign, the growth was a more modest 0.7 million (0.5%) quarterly and 2.3 million (1.8%) annually.

The DNIB report for Q4 2017 can be downloaded here (pdf).

Donuts releases free TLD-neutral name-spinner

Kevin Murphy, January 24, 2018, Domain Services

Donuts has announced the release of a free name-spinner tool for registrars and resellers.

Relevant Name Search, found at rns.domains, isn’t a destination site in itself, but will be free for registrars to integrate into their storefronts.

The company said it’s been in beta testing with eNom, Dreamhost, Dynadot and Name.com, with eNom using it for over a year.

The service recalls something similar released by Verisign.

However, unlike the Verisign NameStudio tool, Donuts said RNS is “registry-neutral”, meaning it’s not designed to plug its own portfolio of TLDs over those from other registries.

I subjected the service to a quick, non-scientific test today and found the results much more semantically relevant than the Verisign tool, which only returns .com, .net and .cc results.

When I used NameStudio in November to search for “vodka”, my best offering was dogvodka.com. With RNS, I was offered the likes of vodka.bar, vodka.rocks, vodka.party, vodka.social and vodka.trade (all of which appear to carry premium pricing).

While Verisign offered me funattorney.com on a search for “attorney”, Donuts offered up attorney.lawyer, attorney.lgbt and attorney.blog.

RNS does not ignore legacy gTLDs, however. Doing a search for something a little more niche will bring up .com and .net domains, appropriately (in my view) ranked.

Search for “birmingham taxi” and you’ll get three relevant .limo domains (yeah, .limo exists, apparently) before birminghamtaxi.net.

Similarly, if you want to open up a pizza place in Cardiff, search for “cardiff pizza” and you’ll get offered cardiff.pizza, cardiffpizza.menu, cardiffpizza.restaurant, cardiffpizza.cafe and cardiffpizza.delivery before you get to cardiffpizza.com.

Many domain investors would say that the .com is unarguably the superior domain (it’s also unregistered and non-premium), but even those people would have to admit that the five more prominent suggestions have more semantic relevance.

Donuts said that RNS is configurable to take into account TLD-specific promotions, geography and marketing campaigns, and that it can be integrated with a single API call.