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These might be the top 10 biggest new gTLD daily growth spikes

With news seeping out this evening that XYZ.com’s latest marketing blitz has very possibly added half a million domains to its .xyz gTLD today, I thought I’d knock out some data on the previous largest one-day growth spikes in new gTLDs.

With some caveats, which I’ll get to, I think these might be the top 10 growth days for new gTLDs.

TLDDateGrowth (domains)
top2016-02-16238,616
wang2016-03-02175,900
bid2016-02-18145,330
wang2016-03-03137,313
xyz2016-02-07131,375
site2016-02-24120,275
xyz2015-11-01111,160
xn--ses554g (.网址)2015-01-07109,763
wang2016-03-01107,599
xn--ses554g (.网址)2015-01-06104,548

They’re the only 10 spikes of over 100,000 domains I could confirm in the DI PRO database, at least in 2012-round gTLDs.

With .xyz reportedly adding at least 400,000 domains today, due to several registrars basically giving them away, it’s certainly going to be at the top of this table tomorrow.

XYZ is celebrating its second anniversary of general availability tomorrow, and has invested several million bucks in promotions on registrars which are in turn selling .xyz names for as little as a penny apiece.

As mentioned, there are some caveats to the data in the table above.

It’s based on the zone files published daily by ICANN’s Centralized Zone Data Service, which can be patchy.

CZDS is set up in such a way that each user has missing days here and there, and it has in the not too distant past had a tendency to balk when it receives an unexpectedly large zone file.

In other words, there’s a pretty good chance I’ve missed some spikes, but I’m confident there’s nothing else approaching 400,000 in a day.

UPDATE: .vip should be on the table, with a one-day spike of 115,245 on May 18 2016.

Registrars selling .xyz names for pennies

XYZ.com’s campaign to keep its volumes high as .xyz approaches its second anniversary seem to have resulted in basically free registrations.

Uniregistry said yesterday that it has started selling .xyz domains for just $0.01, and NameCheap is offering them for $0.02.

The prices, which apply to first-year registrations, kicked in yesterday and expire at midnight June 3.

Over in China, Xin Net and West.cn are both pricing the domains at a relatively huge CNY 2 ($0.30).

I expect there are similar offers at other registrars too.

West.cn. the largest .xyz registrar, said last week that it is also subsidizing renewals for the month of June, bringing the cost down to $2.73.

The aforementioned registrars have big splashes announcing the offers on their home pages.

XYZ said Friday that it has put aside “several million dollars” to advertise its birthday on registrar storefronts and elsewhere.

Uniregistry said that from June 3 to June 30 the price will be just $0.18.

Uniregistry’s current .xyz volume is measured in the tens of thousands. It’s ranked just behind Go Daddy, which does not appear to be participating in this promotion, by .xyz domains under management.

.xyz went into general availability June 2, 2014.

Since August 2015, not long after its anniversary deletes have been substantially outstripping renewals, but adds have been going nuts.

It has about 2.8 million domains in its zone file right now, two million of which have been added in the last 12 months.

Despite the anniversary hoopla this time around, there was not a big spike in .xyz registrations around its first birthday last year, when it added a fairly normal 50,000 or so domains.

West.cn to prop up .xyz renewals with $1.5 million subsidy

Leading Chinese registrar West.cn has said it will subsidize .xyz renewals to the tune of $1.5 million.

According to a West.cn press release, CEO He Xiaojiang made the announcement alongside XYZ.com counterpart Daniel Negari at meeting in Beijing on Friday.

The registrar’s .xyz customers “are going to get high rebate back from West.cn so that they can get very low renewal fees”, according to a translation of the original Chinese.

The subsidized renewal price, which starts in June, will be RMB 18 ($2.73), according to the company.

That’s about a $7 discount on West.cn’s usual renewal price of RMB 64.

First-year .xyz prices at the registrar are currently RMB 8 ($1.22).

West.cn is believed to have well over a million .xyz domains on its books. With over a third market share, it’s XYZ.com’s biggest registrar.

The press release points out that West.cn is not getting a special rate from XYZ (which would be against ICANN rules).

Negari declined to elaborate on the specifics of the subsidy.

But in what is no doubt a related move, he told DomainInvesting.com yesterday that XYZ has “reserved several million dollars to be spent with registrars and on advertising platforms for our 2 year anniversary”.

This ad spend will be made over the month of June, he said, to coincide with the June 2, 2014 general availability launch of .xyz.

Fifty registrars are participating, he said, calling it the “biggest sale” the industry has seen.

Whether through heavily discounted renewals or bargain first-year regs, it seems the company is set on making sure its DUM volume does not dip as its anniversary approaches.

It’s not unusual for registries to do special offers to coincide with launch birthdays.

.xyz currently has about 2.8 million registered domains, but about 1.8 million of those were registered after June 2015 and are not in need of renewal before the promotion period expires (though registrants can of course renew whenever they like).

CentralNic doing okay out of new gTLDs

Local former rival Minds + Machines may be struggling to turn a profit, but CentralNic seems to be doing quite well out of this new gTLD malarkey.

But not as well as you might expect. Large growth at its clients does not appear to have translated to a whole lot more revenue for CentralNic itself.

The company yesterday reported 2015 profit before tax of £1.45 million ($2.13 million), compared to £520,000 in 2014, on revenue up 71% at £10.39 million ($15.28 million).

While it may be best known nowadays as a back-end registry provider, its revenue is now fairly evenly split over its three reporting segments.

CentralNic runs the back-end registry for volume gTLDs including .xyz and Radix’s .site, .online, .website, and .space.

The company calls this “wholesale domain sales”, and it brought in £3.12 million last year, compared to £2.82 million in 2014.

You might think that the volume success of .xyz, which added about a million names in 2015, might have translated into a bigger boost, but it didn’t.

Its registrar business, which it got into through the acquisitions of Internet.bs and Instra, brought in £3.4 million, compared to £1.55 million in 2014.

Its third segment, “Enterprise including Premium Domain Name Sales” saw revenue of £3.85 million, compared to $1.69 million.

The enterprise business, which also included two software licenses and revenue from dot-brand clients, is easily the most profitable segment, with a 67% EBITDA margin. For wholesale, it’s 44%.

The £3.8 million of enterprise revenue included £3.22 million premium name sales, of which over £3 million came from a single buyer.

It’s not clear whether this was a single domain deal or a package of premiums, but it represents the most volatile element of CentralNic’s revenue.

Update (May 30) — This article originally misidentified “Company A” and “Company B” in CentralNic’s accounts as registry clients. In fact, according to CEO Ben Crawford, they’re registrar channel partners.

XYZ settles Verisign’s back-end switcheroo lawsuit

XYZ.com has settled a lawsuit filed against it against Verisign stemming from XYZ’s acquisition of .theatre, .security and .protection.

Verisign sued the new gTLD registry operator for “interfering” with its back-end contracts with the previous owners last August, as part of its campaign to compete against new gTLDs in the courtroom.

XYZ had acquired the .security and .protection ICANN contracts from security Symantec, and .theatre from a company called KBE Holdings.

As part of the transitions, all three applications were modified with ICANN to name CentralNic as the back-end registry services provider, replacing Verisign.

Verisign sued on the basis of tortious interference and business conspiracy. It was thrown out of court in November then amended and re-filed.

But the case appears to have now been settled.

Negari issued a grovelling not-quite-apology statement on his blog:

I am pleased to report that the recent case filed by Verisign against CentralNic, Ltd., XYZ and myself has been settled. After looking at the claims in dispute, we regret that as a result of our acquisition of the .theatre, .security and .protection extensions and our arrangement for CentralNic to serve as the backend service provider for these extensions, that Verisign was prevented from the opportunity to pursue monetization of those relationships. As ICANN’s new gTLD program continues to evolve, we would caution others who find themselves in similar situations to be mindful of the existing contracts extension owners may have with third parties.

Registries changing their minds about their back-end provider is not unheard of.

In this case, large portions of Verisign’s final amended complaint were redacted, suggesting some peculiarities to this particular switch.

If there was a monetary component to the settlement, it was not disclosed. The original Verisign complaint had demanded damages of over $2 million.