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ICANN expects to lose 750 registrars in the next year

ICANN is predicting that about 750 accredited registrars will close over the next 12 months due to the over-saturation of the drop-catching market.

ICANN VP Cyrus Namazi made the estimate while explaining ICANN’s fiscal 2018 budget, which is where the projection originated, at the organization’s public meeting in South Africa last week.

He said that ICANN ended its fiscal 2017 last week with 2,989 accredited registrars, but that ICANN expects to lose about 250 per quarter starting from October until this time next year.

These almost 3,000 registrars belong to about 400 registrar families, he said.

By my estimate, roughly two thirds of the registrars are shell accreditations under the ownership of just three companies — Web.com (Namejet and SnapNames), Pheenix, and TurnCommerce (DropCatch.com).

These companies lay out millions of dollars on accreditation fees in order to game ICANN rules and get more connections to registries — mainly Verisign’s .com.

More connections gives them a greater chance of quickly registering potentially valuable domains milliseconds after they are deleted. Drop-catching, in other words.

But Namazi indicated that ICANN’s cautious “best estimate” is that there’s not enough good stuff dropping to justify the number of accreditations these three companies own.

“With the model we have, I believe at the moment the total available market for these sought-after domains that these multifamily registrars are after is not able to withstand the thousands of accreditations that are there,” he said. “Each accreditation costs quite a bit of money.”

Having a registrar accreditation costs $4,000 a year, not including ICANN’s variable and transaction fees.

“We think the market has probably gone beyond what the available market is,” he said.

He cautioned that the situation was “fluid” and that ICANN was keeping an eye on it because these accreditations fees have become material to its budget in the last few years.

If the three drop-catchers do start dumping registrars, it would reveal an extremely short shelf life for their accreditations.

Pheenix upped its registrar count by 300 and DropCatch added 500 to its already huge stable as recently as December 2016.

Web.com in takeover talks – report

Web.com is in talks to be acquired by private equity firms, according to a report.

Reuters reported last night that the registrar said the talks were “early stage” and that there was no guarantee of a deal.

Web.com is of course home to Network Solutions, Register.com and is involved in secondary market plays SnapNames and NameJet.

The company had 2016 revenue of $710 million and a market capitalization prior to the report of $1.1 billion. Its shares surged on the news.

Nigger.com returned to NAACP after expiration prompts $10,000 auction

Kevin Murphy, February 14, 2017, Gossip

US civil rights group the National Association for the Advancement of Colored People has reclaimed the domain name nigger.com after it expired and went to auction.

The names nigger.org and nigger.net were also affected, but according to Whois records the NAACP restored all three yesterday.

The names had been in pending renewal/delete status for three weeks, during which time the registrant was listed as Perfect Privacy, Web.com’s proxy/privacy provider.

While expired, the .com had been placed (presumably automatically) in a NameJet auction, as first reported by Raymond Hackney at The Domains.

At time of writing, the auction had attracted 72 bids and a high offer of $10,000.

It was a “Wish List Auction”, indicating that the domain’s prior registrant had not yet exhausted all options to have the name restored.

As Hackney noted, if these domains fell into the wrong hands it could have a negative impact on race relations in the US.

But the NAACP, which first got hold of the domains almost 20 years ago, seems to have had a remarkably lackadaisical attitude to them over the last few years.

Not only did it accidentally allow the names to expire, but DomainTools and Archive.org captures show that the associated web sites had been compromised repeatedly since late 2014.

Every capture since late 2014 shows taunting, racist messages from the hackers, at least one of which associated himself with troll group the “Gay Nigger Association of America”.

Web.com policy exec moves to ICANN

Kevin Murphy, July 14, 2016, Domain Policy

Domain industry veteran Jennifer Gore is to become ICANN’s new director of registrar relations.

She takes over the role from Mike Zupke, who I gather is leaving ICANN, from next Monday. She will report to Cyrus Namazi in ICANN’s Global Domains Division.

Gore was most recently senior director of policy at Web.com, a role she held for over five years. Much of her earlier career was spent at Network Solutions and Verisign.

Her move from industry to ICANN means she has had to resign her position on the GNSO Council, where she represented the Registrars Stakeholder Group.

The RrSG will now have to hold an election to find her replacement.

Web.com acquires dozens of registrars from Rightside

Kevin Murphy, May 11, 2016, Domain Services

Web.com has acquired dozens of registrars from rival/partner Rightside, seemingly to boost the success rate of its SnapNames domain drop-catching business.

I’ve established that at least 44 registrars once managed by Rightside/eNom have moved to the Web.com stable in recent weeks, and that might not even be the half of it.

All of the registrars in question are shell companies used exclusively to register pre-ordered names as they are deleted by registries, usually Verisign.

The more registrars you have, the more EPP connections you have to the Verisign registry and the better your chance at catching a domain.

Web.com runs SnapNames, and is in a 50-50 partnership with Rightside on rival drop-catcher NameJet.

The two compete primarily with NameBright’s DropCatch.com, which obtained hundreds of fresh ICANN accreditations last year, bringing its total pool to over 750.

Web.com has fewer than 400 accreditations right now. Rightside has even fewer.

It’s usually quicker to buy a registrar than to obtain a new accreditation from ICANN.

If Web.com finds itself in need of more accreditations in order to compete, and Rightside is happy to let them go, it could be possible to infer that SnapNames is doing rather better in terms of customer acquisition than NameJet.

But the two services recently announced a partnership under which names grabbed by either network would be placed in an auction in which customers of either site could participate.

This would have the effect of increasing the number of caught names going to auction due to there being multiple bidders, and thus the eventual sales prices.