Revenue dips as Brexit whacks .eu in 2018

.eu saw its registrations sink substantially in 2018, largely due to Brexit, which affected its revenue and profit.
Registry EURid said yesterday that it was managing 3,684,750 .eu domains at the end of the year, down by 130,305 over the year.
It’s .eu’s lowest end-of-year domain count since 2012.
The UK, which voted to leave the EU in 2016 but has yet to follow through, sank from the fourth-largest .eu country to the sixth, now behind less populous countries Poland and Italy.
EURid and the UK government have warned UK-based registrants that they stand to lose their domains after Brexit is actually executed (if it ever is)
As Brits abandoned their .eu names by the tens of thousands, EURid also suspended over 36,000 domains for abuse, which affected its annual total.
The decline hit EURid’s revenue, which was down to €12.7 million, from €13.3 million in 2017. Profit was down from €1.7 million, from €2 million.
The data was published in the registry’s annual report (pdf), published yesterday.

KPMG dumps .com for dot-brand gTLD

KPMG has become the latest company to dump its .com domain in favor of its dot-brand gTLD.
The company recently announced that it is now using home.kpmg as its primary web site domain, replacing kpmg.com.
The migration appears to be complete already. URLs on the old .com address now bounce users to the equivalent page on .kpmg. Web searches for KPMG return the .kpmg domain as the top hit.
KPMG said in a press release:

The move enhances the KPMG brand through a strong, simplified name, and provides end users with a level of assurance that any site that ends with .kpmg is owned and operated by KPMG.
Since the top level domain can only be used by KPMG, visitors to sites that use the new top level domain can easily confirm its authenticity and be assured that the information they contain is reliable and secure.

The company said that it is the first of the “Big Four” professional services firms to make the switch.
This is technically correct. Rival Deloitte uses several .deloitte domains, but it has not bit the bullet and migrated from its .com.
Of the other two, Ernst & Young does not have a dot-brand, and PricewaterhouseCoopers does not use its .pwc extension beyond a single experimental domain that redirects to pwc.com.
KPMG had revenue just shy of $29 billion last year and is one of the most recognizable brands in the corporate world.

David and Goliath? DotMusic confirms .music win

Cyprus-based registry upstart DotMusic Ltd has confirmed that it has secured the rights to the .music gTLD.
Founder and CEO Constantinos Roussos tweeted the news overnight.

Excited to announce that after more than a decade, DotMusic has prevailed and will be the .MUSIC registry 🙂 https://t.co/XSnCkQVn28 #ICANN #DotMusic #DavidandGoliath #Music #Domains pic.twitter.com/tQX14eYyKu

— Constantine Roussos (@mus) April 11, 2019

It is not known how much DotMusic paid for the string, which I believe was auctioned in late March.
DotMusic fought off competition from seven other applicants, including some heavy-hitters: Google, Amazon, Donuts, Radix, Far Further, Domain Venture Partners and MMX.
MMX’s application was the last to be withdrawn, last night.
It’s not impossible that .music could launch before the end of the year, after DotMusic has completed the remaining pre-delegation steps such as signing its ICANN registry contract.
There will also be a couple of launch phases that give priority to members of the music industry.
Even when it goes to general availability, it won’t be a free-for-all, however.
DotMusic, in its efforts to secure support from the piracy-fearful music industry, proposed relatively strict “enhanced safeguards” for .music.
Registrants will have to verify their identity by phone as well as email in order to register a domain. They’ll also be restricted to strings matching their “their own name, acronym or Doing Business As”.
I don’t think the policies as outlined will be enough to prevent speculation, but they will add friction, possibly throttling sales volume.
In other news, it turns out Dewey did in fact defeat Truman.

Neustar loses most of its Amazon back-end biz to Nominet

Amazon has switched two thirds of its large portfolio of new gTLDs over to Nominet’s back-end registry services, replacing Neustar.
Judging by changes to IANA records this week, Amazon has moved 35 gTLDs to Nominet, leaving 17 at Neustar.
A Neustar spokesperson confirmed the changes, telling DI:

in an effort to diversify their back-end support, Amazon has chosen to move some, but not all, of their TLDs to another provider. Neustar will still manage multiple Amazon TLDs after the transition and we look forward to our continued partnership.

The switch more than doubles Nominet’s number of TLDs under management. Its biggest customer to date was MMX, which pushed 20 of its TLDs to the .uk registry in a restructuring a few years ago.
The Amazon loss, and a few others recently, also mean that Neustar is by my back-of-the-envelope calculation no longer the largest back-end when measured by the number of TLDs under management.
Those bragging rights would go to Donuts, which self-manages its own rather large portfolio of 241 TLDs. Neustar would remain the largest provider in terms of service provided to third-party clients.
The Neustar-to-Nominet technical migration appears to have kicked off a couple of weeks ago and emerged Wednesday when Nominet’s Technical Contact information replaced Neustar’s in most of Amazon’s IANA records.
Customers will not have noticed, because the TLDs in question barely have any customers.
The only one of the 35 affected TLDs with any registrations at all is .moi, which has just a couple hundred domains in its zone.
The other affected TLDs, none of which have launched, are: .moi, .yamaxun, .author, .book, .buy, .call, .circle, .fast, .got, .jot, .joy, .like, .pin, .read, .room, .safe, .smile, .tushu, .wanggou, .spot, .tunes, .you, .talk, .audible, .deal, .fire, .now, .kindle, .silk, .save, .hot, .pay, .secure, .wow and .free.
The TLDs remaining with Neustar are: .bot, .zero, .ポイント, .書籍, .クラウド, .ストア, .セール, .coupon, .zappos, .ファッション, .食品, .song, .家電, .aws, .imdb, .prime, and .通販.
Six of the TLDs staying with Neustar have launched, but only one, .bot, has more than 100 registrations.
.bot is a tightly restricted, experimental space currently in a long-term “limited registration period” which is not due to end until next January. It has around 1,500 names in its zone file.
Four of Amazon’s dot-brands are staying with Neustar, which is probably the most enthusiastic cheerleader for dot-brands out there, and four are going to Nominet.
Neustar appears to be keeping all of Amazon’s internationalized domain names. Nominet currently manages no IDNs.
How important the adjustment is from a dollar perspective would rather depend on what the per-domain component of the deals were, and whether Amazon ever plans to actually make its gTLDs commercially available.
In recent weeks, XYZ.com also moved its recently acquired .baby gTLD from Neustar, where it had been an unused dot-brand, to preferred provider CentralNic, while .kred and .ceo, both under the same ownership, also switched to CentralNic.

Italian bank is the latest dot-brand to bow out

Banca Nazionale del Lavoro, Italy’s sixth-largest bank, has become the latest new gTLD owner to tell ICANN it no longer wishes to run its dot-brand.
It’s the 47th new gTLD to request termination of its registry contract. The affected TLD is .bnl.
ICANN has already decided not to transition the contract to a new owner, as usual.
Also as usual, the gTLD has never been used above and beyond the obligatory nic. site.
What makes this termination somewhat noteworthy is that BNL is a subsidiary of French bank BNP Paribas, which is one of the most enthusiastic dot-brand owners out there.
BNP Paribas dumped its .fr and .net domains in favor of its domains under .bnpparibas back in 2015 and currently has roughly 250 domains in its zone file and dozens of live sites.
The domain mabanque.bnpparibas, used for its French retail banking services, was for some time a top 10 most-visited new gTLD domain names, per Alexa rankings, but that has slipped as new gTLDs’ popularity have increased overall.

.music update: I’m calling it for Costa

Amazon has pulled out of the fight for the .music gTLD, and I’m ready to call the race.
In full knowledge that this could be my “Dewey Defeats Truman” moment, it seems to me the balance of evidence right now is strongly pointing to a win for DotMusic over sole remaining rival bidder MMX.
The contention set originally had eight applicants, but six — Google, Donuts, Radix, Far Further, Domain Venture Partners and last night Amazon — have withdrawn over the last week or so.
This is a sure sign that the battle is over, and that the rights to .music have been auctioned off.
The two remaining applicants yet to withdraw are DotMusic Ltd, the Cyprus-based company founded and managed by music enthusiast and entrepreneur Constantinos Roussos, and Entertainment Names Inc, a joint venture managed by MMX (aka Minds + Machines).
One of them will withdraw its application soon, and my money’s on MMX.
Neither company will talk to me about the result.
But, as I observed Monday, DotMusic has recently substantially revamped its web site, and appears to be accepting “pre-registrations” for .music domains. These are not the actions of a loser.
MMX, on the other hand, has never shared Roussos’ public enthusiasm for .music and has never been particularly enthusiastic about winning private gTLD auctions, usually preferring instead to enjoy the proceeds of losing.
There are only two wildcard factors at play here that may soon make me look foolish.
First, the joint venture partner for Entertainment Names is an unknown quantity. Its two directors, listed in its .music application, are a pair of Hollywood entertainment lawyers with no previous strong connection to the ICANN ecosystem. I’ve no idea what their agenda is.
Second, MMX did not mention .music once in the “Post Period Highlights” of its recently filed 2018 financial results statement. It did mention the resolution of the .gay and .cpa contention sets, but not .music.
That filing came out April 3, at least a few days after the contention set had been won, but I’m assuming that the tight timing and/or non-disclosure agreements are probably to blame for the lack of a mention for .music.
So, on balance, I’m calling it for Roussos.
With a bit of luck we’ll have confirmation and maybe a bit of detail about potential launch dates before the week is out.

Did Roussos pull off the impossible? Google, Donuts, Radix all drop out of .music race

Google won’t be the registry for the .music gTLD.
The company, along with pure-play registries Donuts and Radix, late last week withdrew their respective applications from the .music contention set, leaving just three possible winners in the running.
Those are Amazon, MMX, and DotMusic, the company run by long-time .music fanboy Constantinos Roussos.
As I blogged last week, applications from Domain Venture Partners and Far Further have also been withdrawn.
I suspect, but do not know for a fact, that the contention was settled with a private deal, likely an auction, recently.
The logical guess for a winner would be Amazon, if only because of the nexus of its business to the music industry and the amount of money it could throw at an auction.
But I’m beginning to suspect that DotMusic might have prevailed.
The company appears to have recently revamped its web site, almost as if it’s gearing up for a launch.
Comparing the current version of music.us to versions in Google’s cache, it appears that the site has been recently given a new look, new copy and even a new logo.
It’s even added a prominent header link inviting prospective resellers to sign up, using a form that also appears to have been added in the last few weeks.
These changes all seem to have been made after the crucial ICANN vote that threw out the last of DotMusic’s appeals, March 14.
Are those the actions of an applicant resigned to defeat, or has Roussos pulled off the apparently impossible, defeating two of the internet’s biggest companies to one of the industry’s most coveted and controversial strings?
Participants in gTLD auctions typically sign NDAs, so we’re going to have to wait a bit longer (probably no more than a few days) to find out which of the remaining three applicants actually won.

Looks like .music is finally on its way

The hard-fought battle for .music appears to be over.
I’m not yet in a position to tell you which of the eight applicants for the new gTLD has been successful, but I can tell you some of those who were not.
Two applicants have this week withdrawn their bids, an almost certain sign that the contention set has been privately settled.
The first applicant to ditch its bid was dot Music Ltd, an application vehicle of Domain Venture Partners (we used to call this outfit Famous Four Media, but that’s changed).
The other is .music LLC, also known as Far Further.
We can almost certainly expect all but one of the remaining applicants to withdraw their applications over the coming days.
Applicants typically sign NDAs when they settle contention privately, usually via an auction.
Far Further was one of two unsuccessful “community” applicants for .music. It had the backing of dozens of music trade groups, including the influential Recording Industry Association of America. Even Radiohead’s guitarist chipped in with his support.
Evidently, none of these groups were prepared to fund Far Further to the extent it could win the .music contention set.
The .music contention set has been held up by the continuing protestations of the other community applicant, DotMusic Limited, the company run by long-time .music cheerleader Constantinos Roussos.
After DotMusic lost its Community Priority Evaluation in 2016, on the basis that the “community” was pretty much illusory under ICANN rules, it started to complain that the process was unfair.
The applicant immediately filed a Request for Reconsideration with ICANN.
.music then found itself one of several proposed gTLDs frozen while ICANN conducted an outside review of alleged irregularities in the CPE process.
That review found no impropriety in early 2018, a verdict DotMusic’s lawyer dismissed as a “whitewash”.
It has since stalled the process several times with requests for information under ICANN’s Documentary Information Disclosure Policy, and more RfRs when those requests were denied.
But this series of appeals finally came to an end March 14, when ICANN’s board of directors finally ruled against DotMusic’s 2016 RfR.
That appears to have opened up the .music set for private resolution.
So who won? I don’t know yet, but the remaining applicants are: DotMusic itself, Google, Amazon, MMX, Donuts and Radix.
There are certainly two very deep-pocketed companies on that list. Could we be looking at Google or Amazon as the new proprietors of .music?
If either of those companies has won, prospective registrants might find they have a long wait before they can pick up a .music domain. Neither of these giants has a track record of rushing its new gTLDs to market.
If the victor is a conventional gTLD registry, we’d very probably be looking at a launch in 2019.

.blog tops 200,000 regs due to WordPress partnership

Knock Knock Whois There, the WordPress-affiliated .blog registry, said today that it has topped 200,000 names for the first time.
The milestone comes after about 28 months of general availability, during which growth has been slow but stable.
The company said it has a respectable renewal rate of 72.74%, which is only a couple of points behind .com.
KKWT’s relationship with its parent company, Automattic, owner of WordPress.com and an accredited registrar in its own right, has been crucial to .blog’s growth.
According to registry transaction reports, two-thirds of all .blog domains are sold via Automattic, which had over 128,000 .blog domains under management at the end of 2018.
Tucows is a distant second, with about 10,000 names.
Automattic promotes .blog prominently on its registrar site, selling for $18.95 a year.
But it’s still sold more .com domains, over half a million so far, at the slightly cheaper price of $15 per year.

.london disaster leads to mixed 2018 for MMX

New gTLD registry MMX, aka Minds + Machines, suffered a huge net loss in 2018, largely due to its disastrous .london contract, even while its operating fundamentals improved.
For the year, MMX reported a net loss of $12.6 million, compared to a 2017 profits of $3.8 million, on revenue up 5% to $15.1 million.
The loss was almost entirely attributable to charges related to an “onerous contract” with one of its partners.
MMX has never disclosed the identity of this partner, but the only outfit that fits the profile is London & Partners, the agency with which MMX partnered to launch .london several years ago.
The registry, expecting big things from the geo-TLD, promised to pay L&P millions over the term of the contract, which expires in 2021.
But it’s been a bit of a damp squib compared to former management’s expectations, peaking at about 86,000 regs last year and shrinking ever since.
MMX says the estimated gap between the minimum revenue guarantee payable to L&P and the expected revenue is expected to bring in before 2021, is $7.2 million.
It’s recorded this as a charge on its income statement accordingly, along with another $4.2 million impairment charge related to the same contract.
The company recorded a $7.7 million accounting charge related to this contract in 2016, too.
The company says that to date it has lost about $13.7 million on the deal.
These charges, along with a few other smaller one-off expenses, were enough to push the company into the black for 2018.
But other key performance indicators showed more promise, helped along by the acquisition last year of porn-themed registry operator ICM Register, best-known for .xxx.
Notably, renewal revenue almost doubled, up 97% to $9.4 million.
Domains under management was up 37% to 1.81 million.
Operating EBITDA was $3.6 million, up 12.5%.
Looking ahead, MMX said billings for the first quarter are expected to be up 246%, due to the first impact of the ICM acquisition.
It also said it closed $500,000 of sales in .law in China in March. That would work out to over 5,000 domains, based on the retail price of about $100 a year, but those domains have yet to show up in the .law zone file, which only grew by about 200 domains last month.
MMX said it is planning to launch “a high-value defensive registration product” for corporate registrars by the third quarter.
If I had to guess, I’d say that is probably a clone of Donuts’ Domain Protected Marks List service, which offers trademark owners deep discounts when they defensively block strings across the whole Donuts gTLD portfolio.
It’s a model copied by other registries, including recently Uniregistry.