Domain world growth despite .com slide

In the fastest-published quarterly Domain Name Industry Brief in many years, Verisign last night reported that the world’s extant domain name registrations increased by 5.8 million in the second quarter.

The report was published to coincide with Verisign’s Q2 earnings report, and came just two weeks after the publication of the Q1 brief.

The trend of the domain universe, hampered by the ongoing decline of Verisign’s own .com and .net, which lost 1.8 million names compared to Q1, being buttressed by ccTLDs and new gTLDs, continued.

New gTLDs were up 1.3 million names sequentially and 6.5 million annually — 4.0% and 23.2% respectively — to 34.6 million, but we sadly have to assume that a great many of these new names are speculative or abusive.

Verisign estimates the “combined renewal percentage estimate” for new gTLDs was 38.0%, about half of where .com’s somewhat depressed number lies.

ccTLD domains were at 140 million at the end of June, up 400,000 (0.3%) sequentially and three million (2.2%) annually, the DNIB states.

Pre-2012 gTLD names were up 122,100 sequentially and 154,200 annually, ending the quarter at 17.2 million.

Verisign predicts more gloom as registrars shun .com growth

Verisign has yet again massively downgraded its expectations for .com growth, after it lost almost two million domains in the second quarter.

The company said it had 170.6 million .com and .net domains at the end of June, down 1.8 million compared to Q1 and a 2.2% decrease compared to a year earlier.

CEO Jim Bidzos said Verisign now expects the domain name base for the full year to be between -2% and -3%. That compares to a range of between +0.25% and -1.75% predicted in April and +1% to -1% predicted in February.

The Q2 renewal rate is expected to be 72.6% compared to 73.4% a year ago and 74.1% in Q1.

Bidzos said he does not expect the base to return to positive growth until the second half of 2025.

Bidzos, talking to analysts, acknowledged that Verisign’s wholesale .com price increases “may have had an impact” but put the blame for the growth shortfall squarely on what he called the “unregulated retail channel” in the US.

American registrars have been cranking up their prices in order to prioritize average revenue per user over volume, he said, meaning retail prices for .com have gone up “more than twice” Verisign’s own price hikes, leading to fewer sales as a result.

“Our research shows that the benefit from our capped wholesale prices is not always passed on to consumers,” he said.

He faced a barrage of questions from analysts about recent calls for the US government to sever its ties with Verisign over .com and put the TLD out for competitive rebidding, but reiterated the company’s position that if the government cuts it off, it still gets to run .com under its contract with ICANN.

Despite the volume woes, Verisign continues to be a high-margin cash-generating machine.

The company reported Q2 net income of $199 million, up from $186 million a year ago, on revenue up 4.1% at $387 million. Operating income was up to $266 million from $249 million and operating cash flow up to $160 million from $145 million.

Republicans quiz NTIA on Verisign .com renewal

Three Republican members of the US House of Representatives have raised the specter of Verisign having to compete to renew its .com deal with the US government.

In a letter to the National Telecommunications and Information Administration, the Congresspeople ask whether NTIA has made any efforts to renegotiate or obtain public feedback on its contract with Verisign.

They also ask whether NTIA has looked at the “effect of the recent price increases implemented by Verisign on the .com domain name marketplace” and “the impact of potential registration price increases on the .com domain name market”.

The Cooperative Agreement between NTIA and Verisign is what allows the company to raise .com wholesale fees. That power was frozen for years under the Obama administration but returned under Trump.

The letter follows missives from three campaign groups a month ago, which called Verisign, NTIA and ICANN a “cartel” that enables Verisign’s monopoly and called for the .com contract to be put out to bid.

The Congresspeople’s letter doesn’t come anywhere close to asking for the same, but it does cite previous instances where legislators and the Department of Justice have called for a competitive bidding process.

Verisign has responded to earlier letters by pointing out that even if NTIA were to cancel the agreement, the .com Registry Agreement with ICANN would still stand.

The letter (pdf) is signed by House Energy and Commerce Committee chair Cathy McMorris Rodgers, Subcommittee on Communications and Technology chair Bob Latta, and Subcommittee on Oversight and Investigations chair Morgan Griffith.

The Cooperative Agreement is set to auto-renew in November. The Congresspeople want answers from NTIA before August 8.

.au prices going up

auDA is to raise the wholesale price of .au domains later this year in response to inflation.

The registry said that the price will go up from AUD 7.78 to AUD 8.45 ($5.60 USD), not including sales tax, on October 1 due to “inflation-based cost pressures”.

auDA said the prices mean .au domains will continue “to cost significantly less than the wholesale price of other comparable Top Level Domain options.”

Even after the price increase, .au will be closer to a .uk ($5) than a .com ($10.26).

First registry gets breach notice over new abuse rules

.TOP Registry allegedly ignored reports about phishing attacks and has become the first ICANN contracted party to get put on the naughty step over DNS abuse rules that came into effect a few months ago.

ICANN has issued a public breach notice claiming that the registry, which runs .top, has also been ignoring the results of Uniform Rapid Suspension cases, enabling cybersquatting to take place.

The notice says that .TOP breached new rules, which came into effect April 5, that require it to act on reports of DNS abuse (such as malware or phishing attacks) by suspending the domains or referring them to the responsible registrar.

The registry didn’t do this with respect to a report of April 18, concerning “multiple .top domain names allegedly used to conduct phishing attacks”. It didn’t even read the report until contacted by ICANN, according to the notice.

As of yesterday, only 33% of the phishing domains have been suspended by their registrars, some three months after the attacks were reported, ICANN says.

Compliance is also concerned that .TOP seems to be ignoring notices from Forum, the company that processes URS cases, requiring domains to be locked within 24 hours when they’ve been hit with a charge of cybersquatting.

The registry “blatantly and repeatedly violated” these rules, according to ICANN.

.TOP has been given until August 15 to get its act together or risk having its Registry Agreement suspended or terminated.

The registry has about three million .top domains under management, having long been one of the most successful new gTLDs of the 2012 round in volume terms. It typically sells domains very cheaply, which of course attracts bad actors.

Four more gTLDs in emergency measures

ICANN has thrown four more gTLDs into the Emergency Back-End Registry Operator program, presumably as a prelude to terminating their registry’s contracts in a few weeks.

Asia Green IT System’s .pars, .shia, .tci and .همراه (.xn--mgbt3dhd) are all going EBERO, meaning Nominet will take over their operation on ICANN’s behalf.

Not that they need much operation, given that all four, which all connect in some way to Iran and Iranian culture, were unlaunched and dormant, with no third-party registrations.

The four TLDs, along with AGIT’s .nowruz, which went into EBERO last week, had been running on CoCCA’s back-end, but it sounds rather like the registry forgot to pay its bills, causing CoCCA to disable its services.

That led to functions such as Whois going offline, triggering a breach of the ICANN Registry Agreement. A day of Whois downtime in one week gives ICANN grounds to get Nominet involved and move towards termination.

A breach notice issued a couple weeks ago gave AGIT until the end of the month to come back into compliance or risk termination. That escalation now appears inevitable.

AGIT almost got to run .islam and .halal, but had its applications rejected after protests from governments of Muslim-majority country. Somehow, .shia did not receive the same outcry.

Eight interesting recent dot-brand registrations

If somebody told me that this blog spends altogether too much time shitting on dot-brand gTLDs, I probably wouldn’t argue with them very long or hard before conceding they probably have a point.

So I thought it might be useful, in the interests of balance, to occasionally (perhaps monthly) highlight some of the more interesting dot-brand registrations I’ve spotted recently.

There’s usually plenty to choose from — 34 dot-brand registries registered a total of 135 domains in June, many of which already resolve to live web sites, and there have been over 25,000 registrations to date — so these picks are purely subjective.

lra.amazon

LRA could stand for a great many things, but one of those things is Labour Relations Agency, which raises an eyebrow given that Amazon is currently fighting its warehouse workers’ attempts to unionize in the UK. Right now, it doesn’t resolve for me.

showthemyourpride.itv

I’ve seen this one promoted on the actual television here in the UK! It’s a campaign by broadcaster ITV, fronted by comedian Alan Carr, to get people to make gay people’s lives a little easier by calling out homophobia and such. It was registered June 27, when Pride Month was pretty much over.

go.volvo

The domain only leads to a 404 right now, but it’s notable because it’s Volvo’s first registered .volvo domain and the name is suggestive of some kind of planned portal site or redirect function. Fifty other dot-brands already have go.brand domains registered. Car brands have had a mixed history in the dot-brand space — some have enthusiastically embraced the concept, others have cancelled their registry contracts. In the first category, both .bmw and .mini also received “go.” registrations in June.

listen.afl

.afl is for the Australian Football League, and this domain redirects to a directory of its podcasts on its main .com.au web site.

ca.pioneer

Providing national portals using two-letter country codes at the second level is a fairly popular dot-brand use case, with Germany’s .de the most popular if you exclude strings that are also English words (my, id, it, etc). You might expect ca.pioneer to lead you to a Canadian portal, but it actually takes you to… ahem… usa.pioneer.

admaker.jio

Indian telco JIO is using this domain for a service that makes advertisements, believe it or not. It has about 20 other .jio domains, like stream.jio and translate.jio, that lead, without redirects, to similar hosted apps.

gpt.lundbeck

Registered by the pharma giant back in May, this is the second registered “gpt” in a dot-brand after gpt.fox. Presumably standing for AI buzz-phrase Generative Pre-trained Transformer, I can’t tell you what either site does because they’re password protected. Lundbeck has over 270 .lundbeck domains, most of which resolve.

beam.google

Could this be the eventual brand for Google’s Project Starline videoconferencing technology, which was first announced back in 2021? It certainly seems possible, given that this April-registered domain leads, without a domain redirect, to the Starline web site.

.me premium sales down

Registry-reserved premium domain sales were down a fair bit last year, according to a summary released by the registry today.

DoMEn said it sold €317,500 of premiums last year. That compares to a total of €591,500 in 2022, when the numbers came in two halves.

It sold 51 premiums in total, compared to 77 in 2022, with an average sale price of €6,215.69.

One and two-character domains accounted for 16 sales, compared to 24 in 2022.

DoMEn blamed a “much weaker primary domain market in the post-COVID era, coupled with the slower economic and venture capital investment activities on a global scale” for the decline.

Pride fails to reverse gay domains decline

There are any number of ways gay people can express themselves during Pride, but buying gay-themed domain names doesn’t appear to be one of them.

Zone files show that the .gay gTLD lost over 700 domains in June, which is recognized in most Anglophone liberal democracies as Pride Month, to end the period with about 21,400 names.

Meanwhile, .lgbt lost about 80 domains over the same period, ending the month with about 3,700 domains in its zone.

The declines were not unique to June. Both gTLDs have been on the slide for a while, with .gay peaking at 29,761 domains last November and .lgbt peaking at about 3,930 in May 2023.

.gay is managed by GoDaddy, .lgbt by Identity Digital.

Unstoppable announces another new gTLD bid

In the run-up to the 2012 new gTLD application round, we were hard-pressed to find a company willing to announce an application. This time around, announcements are coming out of the blockchain world at the rate of about one a week.

Unstoppable Domains has announced that it’s working with Raiinmaker Network to operate .raiin, first as a blockchain-only namespace and later as a new gTLD hopeful.

Raiinmaker says it developers a blockchain protocol that “utilizes decentralized AI and scalable Web3 powered infrastructure to transform the distribution of value tied to authentic identity, data and behavior.”

No, me neither.

Unstoppable said it “will be planning and strategizing with Raiinmaker Network for the next ICANN gTLD application to further solidify its place in the digital landscape.”

It’s the tenth potential application the company has publicly revealed.