No lockdown bump for .eu as domain base shrinks in Q2

The European Union ccTLD .eu did not see an overall benefit from the pandemic lockdowns that affected many of its member states in the second quarter.

Registry operator EURid this week said that its total domains under management for .eu was 3,606,143 at the end of June, down by 16,907 from 3,623,050 at the end of March.

The company blamed Brexit for the decline, as Brits will no longer be eligible for .eu domains after the political transition period expires at the end of the year and many are therefore being allowed to expire.

This has been EURid’s story for many quarters, with the exception of a discount-related Portuguese aberration in Q1.

The number of regs from the UK dropped by 16.6% year-over-year and 5.1% quarter-over-quarter, to wind up at 135,355.

But .eu did not see the lockdown bump experienced by many other registries and registrars during the quarter either.

New regs in Q2 were at 163,277, compared to 190,011 in Q1 and 164,906 in Q2 2019. It sold fewer domains, even as its peers reported significant increases in sales.

I expect this is fairly easily explained.

Anecdotally, much of the pandemic-related boost the industry has experienced has been due to bricks-and-mortar microbusinesses such as mom-n-pop retailers, bars and restaurants selling online for the first time and needing domain names to make the switch.

These types of registrants, serving a small local area, don’t need a TLD reflecting their membership of a vast trading union, and are probably better served by their national ccTLD or a descriptive generic, so .eu got overlooked.

When it comes to the lockdown bump, it appears .eu was the exception to the rule.

After a year’s delay, .gay reveals launch dates

Top Level Design has revealed the launch plan for its .gay gTLD, after almost a year of delays.

General availability was originally planned for October last year, but it was pushed out twice, first due to marketing reasons and then because of coronavirus.

The new plan is for GA to begin at 1500 UTC on September 16. Unlike last year’s planned launch, there does not appear to be any special symbolism to the date.

There’s also going to be an early access period first, from September 8 through 15. This is the period where reg prices start high and reduce every day until they settle at regular GA pricing.

As I’ve previously reported, the registry has reserved five tiers of premium names, from $12,500 down to $100, all of which will renew at premium prices to deter domainers.

The base registry fee is $25, but expect to pay more at the checkout.

Most of the large registrars are on board, with half a dozen set to offer pre-regs, but I don’t see any of the big Chinese registrars on the registry’s list.

Countries ask Amazon for thousands more domain blocks

The eight South American nations of the Amazon region are demanding Amazon block more domain names in the recently delegated .amazon gTLD.

Amazon Cooperation Treaty Organization secretary general Alexandra Moreira has written to Amazon VP of public policy Brian Huseman to complain that Amazon’s current set of “cultural” safeguards do not go far enough.

The August 14 letter, which was forwarded to DI, seems to mark a new phase of bilateral talks, after ICANN washed its hands of its reluctant role of third-party facilitator last month.

Currently, .amazon is governed by a set of Public Interest Commitments in its registry contract designed to protect the “Culture and Heritage specific to the Amazonia region”.

ACTO, as well as disagreeing with the use of the term “Amazonia”, has a narrow interpretation of the PICs that Moreira says is “insufficient to ensure respect for the historic and cultural heritage of the Amazon region”.

Under ACTO’s reading, Amazon is only obliged to block a handful of domains from use, namely the words “OTCA”, “culture”, “heritage”, “forest”, “river”, “rainforest”, the names of indigenous peoples and national symbols.

Moreira writes:

That would leave out a vast number of terms that can still cause confusion or mislead the public about matters specific to the Amazon region, such as the names of cities, villages, mountains, rivers, animals, plants, food and other expressions of the Amazon biome, biodiversity, folklore and culture.

ACTO wants the list of protected domains to be expanded to include these additional categories, and for Amazon and ACTO to sign a binding agreement to that effect.

Given that the Amazon forest is home to literally tens of thousands of distinct species and Brazil alone has over 5,500 municipalities, this could translate to a hell of a long list.

I should probably note that the .amazon PICs also offer ACTO the chance to block 1,500 strings of its own choosing, so ACTO’s narrow interpretation may not tell the whole story.

Dot-brand fizzles out after acquisition

Another dot-brand gTLD has decided to terminate its ICANN contract, but this time it’s because the brand itself has been discontinued.

.ceb was applied for by the Corporate Executive Board Company, a consulting company, in 2012.

But the company was acquired by Gartner in 2017, and the CEB brand was discontinued the following year.

For some reason it’s taken Gartner a couple of years to remember it has a gTLD it doesn’t need, and it’s told ICANN it no longer wishes to operate it.

The .ceb dot-brand was never used.

It’s the 81st dot-brand to self-terminate, the 12th this year.

Domain industry had best April ever under lockdown

The domain industry had its best April ever in terms of new domains sold in gTLDs, according to my tally, despite much of the Western world spending the month in coronavirus lockdown.

There were a total of 5,291,077 domain adds in April, across all 1,253 gTLDs currently filing transaction reports with ICANN.

That’s up almost 100,000 on the 5,191,880 adds in April 2019 and the best April since the first new gTLDs started coming into circulation in 2013.

[table id=60 /]

While a measly 100k jump may be less impressive than expected based on the enthusiastic descriptions of the lockdown bump coming from registries and registrars over the last few months, it makes a bit more sense when you factor out Chinese volume success story .icu.

.icu, currently the largest of the new gTLDs, was having a bit of a growth spurt at the start of 2019, and added 267,287 domains in April last year. That was down to 56,714 this April. The TLD has been declining for the last few months.

Looking at the TLDs that seem most obviously related to lockdown, the standout is .bar, which added 26,175 names this April, compared to just 151 a year ago.

It’s been well-reported that many restaurants and bars affected by coronavirus switched to online ordering and home delivery, and .bar appears to be a strong beneficiary of this trend.

.bar currently has more than 100,000 names in its zone file, roughly double its pre-lockdown level.

.com fared well, adding 3,382,029 domains this April, compared to 3,360,238 in the year-ago period.

But .xyz did better, relatively, adding 256,271 names, compared to 200,003 a year earlier.

Also noteworthy was .buzz, which has been performing very strongly over the last 12 months. It added 60,808 names this April, compared to just a few hundred.

This table shows the 20 gTLDs with the most adds in April 2020, with their April 2019 numbers for comparison.

[table id=61 /]

No .sex please, we’re infected!

MMX saw poorer-than-expected sales of porn-related defensive registrations in the first half of the year, the only blip in what was otherwise a strong period for the company.

The registry updated the market today to say that its domain name base grew by 31% year over year during the half, ending June with 2.38 million names under management. It only grew by 19% in the same period last year.

Billings for H1 were up 7% at $7.9 million, MMX said.

But because the mix shifted away from one-off brokered sales, which are registered on the earnings report as a lump sum, and towards regular automated registrations, which are recognized over the lifetime of the reg, MMX expects to report revenue 5% down on last year.

While that’s all fair enough, the company said that it didn’t sell as many defensive blocks in .xxx, .sex, .porn and .adult as it had expected, which it blamed on coronavirus:

Management also notes that expected H1 channel sales from the Company’s brand protection activity were held back due to the impact of COVID-19, but anticipates those brand protection initiatives that were delayed in Q2 will resume in H2.

It’s a reference to the AdultBlock and AdultBlock Plus services launched last year, which enable trademark owners to block (and not use) their marks in all four adult TLDs for about $350 to $800 a year.

Drop auctions not a slam-dunk, says Nominet

Nominet has responded to criticism of its plans to introduce registry-level .uk drop auctions by saying it’s not about money-grabbing and is not guaranteed to even happen.

Registry MD Eleanor Bradley today blogged:

In some quarters the commentary suggests the driver for change is financial, or to make life more difficult for some business models. It is not.

…

As commercial gain was not our objective, we have suggested that any additional funds raised by changing the policy would be directed towards public benefit activity or used to provide specific services to registrars. Indeed, how to best spend additional funds that result from any policy change is part of the consultation.

The consultation referred to here was launched earlier this month. It suggests replacing the current drop-catching system, in which Nominet suspects some members “collude” to pool their EPP connections, with one of two new processes.

One would be a straightforward auction of desirable dropping names. The other would be to charge drop-catchers up to £6,000 a year for extra concurrent registry connections.

Bradley wrote that “the assumption in some quarters that an auction approach is our preferred option — a fait accompli –- are wide of the mark”.

As I’m one of the people who reported that auctions were Nominet’s “apparently preferred” option, I’ll note that my take was based on the company’s own consultation document, which scores auctions more highly than the alternative on a five-point scale of its own devising.

And a preferred option is not the same as a fait accompli, of course.

The consultation is open for a couple more weeks. A group of disgruntled members plan to petition the board to retain the status quo at its AGM in September.

After Chapter 11 filing, JCPenney dumps its dot-brand

American retailer JCPenney has told ICANN it no longer wishes to own its dot-brand gTLD, .jcp.

The notice was filed just a month after the company entered Chapter 11 bankruptcy protection and announced the permanent closure of hundreds of stores.

Like many retailers of non-essential goods, the company’s fortunes have been badly affected by the coronavirus pandemic.

I suspect the gTLD would have been scrapped eventually regardless — JCPenney never used it, and even the obligatory nic.jcp site merely redirects to the company’s primary .com.

It’s the 80th dot-brand to be dumped by its registry. the 11th this year.

Nominet members revolt over “deepest pockets wins” auction plans

A group of Nominet members and registrars have launched a petition to prevent Nominet from introducing registry-level auctions for dropping .uk domain names.

The petition, organized by Netistrar, reads: “We the undersigned members request that Nominet maintains equal registrar access to expired domain names on a first come first served basis.”

Nominet recently launched a policy consultation that lays out plans to essentially kill off the existing system of drop-catching expired domains and replace it with either registry auctions or a pay-to-play model asking fees of up to £6,000 a year.

The petition says that “these proposals technically and financially restrict a registrars ability to access expired domains”, noting that other ccTLDs “manage an expiry process without an expensive and centralized auction system.”

So far, 70 registrars and individuals (out of the about 3,000 Nominet members) have signed the petition, but they account for more than 400,000 .uk domains.

The petition will be presented at Nominet’s annual general meeting in September. The current policy consultation ends August 14.

The $135 million battle for .web could be won in weeks

Afilias is to get its day in “court” to decide the fate of the .web gTLD just 10 days from now.

The registry is due to face off with ICANN before an Independent Review Process panel in a series of virtual hearings beginning August 3.

The IRP complaint was filed late 2018 as the endgame of Afilias’ attempt to have the results of the July 2016 .web auction overturned.

You’ll recall that Verisign secretly bankrolled the winning bidder, a new gTLD investment vehicle called Nu Dot Co, to the tune of $135 million, causing rival bidders to cry foul.

If that win was vacated, Afilias could take control of .web with its second-place bid.

Afilias claims that ICANN broke its own rules by refusing to thoroughly analyze whether NDC had a secret sugar daddy, something DI first reported on two weeks before the auction.

It has put forward the entirely plausible argument that Verisign splashed out what amounts to about a month’s .com revenue on .web in order to bury it and fortify its .com mindshare monopoly against what could be its most formidable competitor.

In the IRP case to date, ICANN has been acting as transparently as you’d expect when its legal team is involved.

It first redacted all the juiciest details from the Verisign-NDC “Domain Acquisition Agreement” and the presumably damaging testimony of one of its own directors, and more recently has been fighting Afilias’ demands for document discovery.

In March, the IRP panel ruled against ICANN’s protests on almost every count, ordering the org to hand over a mountain of documentation detailing its communications with Verisign and NDC and its internal deliberations around the time of the auction.

But the ace up ICANN’s sleeve may be an allegation made by Verisign that Afilias itself is the one that broke the auction’s rules.

Verisign has produced evidence that an Afilias exec contacted his NDC counterpart five days before the auction, breaking a “blackout period” rule so serious that violators could lose their applications.

While Afilias denies the allegation, the IRP panel ruled in March that Afilias must hand over copies of all communications between itself and rival bidders over the auction period.

We’re not likely to see any of this stuff until the panel issues its final declaration, of course.

In the past, IRP panels have taken as long as six or seven months after the final hearing to deliver their verdicts, but the most-recently decided case, Amazon v ICANN, was decided in just eight or nine weeks.