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A new gTLD kills itself off for the second time

Kevin Murphy, January 18, 2018, Domain Registries

British pharmacy chain Boots has applied to ICANN to terminate its dot-brand contract for the second time.
The company asked for its .boots Registry Agreement, signed in 2015, to be ended in December and ICANN opened the request for public comment this week.
What’s weird about the request is that Boots had already asked for self-termination last April, but that request was subsequently withdrawn by the company.
Boots seems to have changed its mind, twice, in a year.
As I noted first time around, .boots was the first example of a dot-brand that also matches a generic class of goods to chose the easy way out.
It’s quite likely the two-year freeze on re-applying for the string, should anyone want to, will be over by the time the next new gTLD application window opens.
.boots only had the contractually mandated placeholder domain nic.boots live.

Ramchandani promoted to Radix CEO

Kevin Murphy, January 15, 2018, Domain Registries

New gTLD registry Radix has appointed long-time business head Sandeep Ramchandani as CEO.
He’s replacing Bhavin Turakhia, who is CEO of parent company Directi and executive chairman of Radix.
Ramchandani had a lot of autonomy as business head and VP of the company and, in my view, has been basically CEO in all but name for years. I’ve accidentally called him CEO in the pages of DI more than once.
In a press release, he said: “Just as the first few years of Radix were about demonstrating proof of concept, the next few will be about growing awareness and delivering accelerated growth. We are also actively looking to acquire more TLD assets to reach newer segments of the market while leveraging economies of scale.”
The company has a portfolio of nine gTLDs, including .website, .store and .online, and recently announced that its 2017 revenue topped $12 million.

Bezsonoff replaces Kaine at Neustar

Kevin Murphy, January 10, 2018, Domain Registries

.CO Internet alum Nicolai Bezsonoff has replaced Sean Kaine as head of Neustar’s domain name business.
Neustar today announced that Bezsonoff has been appointed VP and general manager of the Registry Solutions business.
That’s Kaine’s old job. I hear he’s leaving the company of his own volition, but I don’t know where he’s going.
Bezsonoff was in a similar role in the Security Solutions division.
He joined Neustar when it acquired Colombian ccTLD registry .CO, where he was COO and co-founder, for $109 million almost four years ago.
The announcement comes just a few weeks after it was announced that Afilias is to take over the running of Australia’s 3.1 million-name ccTLD .au, one of Neustar’s marquee tenants.

Active new gTLD domains drop below 20 million

Kevin Murphy, January 10, 2018, Domain Registries

The number of domain names recorded in new gTLD zone files has dipped below 20 million for the first time in 18 months.
The total crossed the milestone in the wrong direction January 1, according to DI’s records.
As of today, there are 19.8 million domains in zone files, down from a peak of 26 million in March 2017.
The count has gone down by about half a million names in the last 90 days, largely as a result of declines in .top, .xyz and .kiwi, which have each recorded six-figure losses.
It’s the first time that the zone files have showed the number of domains going below 20 million since the beginning of June 2016, when XYZ.com sold millions of .xyz domains for a penny each. Most of those names did not renew a year later.
Zone files do not record every domain that has been registered, just those with active name servers. Others may be registered but unused or on hold for various reasons.

.web closer to reality as antitrust probe ends

Kevin Murphy, January 10, 2018, Domain Registries

Verisign has been given the all-clear by the US government to go ahead and run the new gTLD .web, despite competition concerns.
The Department of Justice told the company yesterday that the antitrust investigation it launched almost exactly a year ago is now “closed”.
Verisign’s secret proxy in the 2016 auction, the original .web applicant Nu Dot Co, now plans to try to execute its Registry Agreement with ICANN.
That contract would then be assigned to Verisign through the normal ICANN process.
The .com registry operator today filed this statement with the US Securities and Exchange Commission:

As the Company previously disclosed, on January 18, 2017, the Company received a Civil Investigative Demand from the Antitrust Division of the United States Department of Justice (“DOJ”) requesting certain material related to the Company becoming the registry operator for the .web gTLD. On January 9, 2018, the DOJ notified the Company that this investigation was closed. Verisign previously announced on August 1, 2016, that it had provided funds for Nu Dot Co’s successful bid for the .web gTLD and the Company anticipates that Nu Dot Co will now seek to execute the .web Registry Agreement with ICANN and thereafter assign it to Verisign upon consent from ICANN.

This basically means that Justice disagrees with anyone who thinks Verisign plans to operate .web in a way that just props up its .com market dominance, such as by burying it without a trace.
People clamoring to register .web domains may still have some time to wait, however.
Rival applicant Donuts, via subsidiary Ruby Glen, still has a pending lawsuit against ICANN in California.
Donuts had originally sued to prevent the .web auction going ahead in mid-2016, trying to force Nu Dot Co to reveal who was really pulling its strings.
After the auction, in which Verisign committed to pay ICANN a record-setting $125 million, Donuts sued to have the result overturned.
But in November 2016, a judge ruled that the no-suing covenant that all new gTLD applicants had to sign was valid, throwing out Donuts’ case.
Donuts is now appealing that ruling, however, filing its most-recent brief just a few weeks ago.
Whether that will stop ICANN from signing the .web contract and delegating it to Verisign is an open question. It managed to delegate .africa to ZA Central Registry despite the existence of an ongoing lawsuit by a competing applicant.
If history is any guide, we may see a rival applicant apply for a temporary restraining order against .web’s delegation before long.

Afilias takes over back-end for Puerto Rico

Kevin Murphy, January 9, 2018, Domain Registries

Afilias has won the back-end contract for Puerto Rico’s ccTLD, .pr.
The registry services provider took over DNS for the zone last month and the final handover of the registration system happened at the weekend.
.pr is a small TLD, under 10,000 names, run by local firm Gauss Research Laboratories. It also tries to market itself as a destination for public relations companies overseas.
It now lists about 30 registrars on its web site, most of which are either corporate-focused or reseller networks.
The deal brings the number of ccTLDs managed by Afilias well into double figures. Afilias also runs the back-end for the likes of .vc, .bz, .lc, and .ag, as well as larger zones including .me and .in.
It recently was selected to run .au for Australia, replacing long-time rival Neustar, from this coming July.
Puerto Rico is the destination of this March’s ICANN 61 public meeting, which may give Afilias some publicity opportunities.

New gTLD to increase prices 10x, add blockchain voting service

Kevin Murphy, January 4, 2018, Domain Registries

The new gTLD .voting is to suffer a steep price increase as its registry bakes a new “e-voting solution” into its offering.
Valuetainment, the Germany-based registry, informed registrars of its decision recently.
While I don’t know the exact figures involved, it appears the annual wholesale cost of a .voting domain will rise more than tenfold.
Currently, the retail price of a .voting domain can range from $60 to $100 per year. After June 1, that price is likely to start around the $600 mark.
But the registry also told registrars it plans to bundle in with each domain an “e-voting solution” in which “votes are anchored in the blockchain”. There would be no additional charge for this service.
This actually smells a bit like innovation, something the new gTLD program has lacked to date but which sometimes scares away registrars that see mainly implementation and support costs.
Steep price increases also have a track record of scaring away registrars, as Uniregistry discovered last year.
I understand the plan is to apply the price increase to renewals for all existing .voting domains, which currently number a little under 1,000.
At the last count, two thirds of .voting domains had been sold via German reseller platform RegistryGate, with GoDaddy a distant second.
Registry representatives have not responded to a request for information about the blockchain-based voting service, so I can’t tell you much more about it other than blockchain-based systems are in vogue right now due to the popularity of speculation in electronic “currencies” such as Bitcoin.

.mail, .home, .corp hopefuls could get exit plan in January

Kevin Murphy, December 27, 2017, Domain Registries

The twenty remaining applicants for the gTLDs .corp, .home and .mail could get the option to bow out with a full refund as early as January.
The ICANN board of directors earlier this month discussed several options for how to treat the in-limbo applications, one of which was a refund.
According to minutes of its December 13 meeting:

Staff outlined some potential options for the Board to consider, which ranged from providing a full refund of the New gTLD Program application fee to the remaining .CORP, .HOME, and .MAIL applicants, to providing priority in subsequent rounds of the New gTLD Program if the applicants were to reapply for the same strings.

Applicants for these strings that already withdrew their applications for a partial refund were also discussed.
The three would-be gTLDs have been frozen for years, after a study showed that they receive vast amounts of error traffic already on a daily basis.
This means there would be likely a large number of name collisions with zones on private networks, should these strings be delegated to the authoritative root.
The ICANN board instructed the staff to draft some resolutions to be voted on at “a subsequent meeting”, suggesting directors are close to reaching a decision.
It seems possible a vote could even happen at a January meeting, given that the board typically meets up almost every month.

.club is the bestest new gTLD, .club survey finds

Kevin Murphy, December 21, 2017, Domain Registries

.CLUB Domains has published the results of some research it commissioned into media mentions of new gTLDs that show .club coming out on top.
It’s an interesting new way to compare the relative success of new gTLDs based on usage or eyeballs rather than registration volumes, even if the report has its flaws.
In a blog post, .CLUB chief marketing officer Jeff Sass wrote:

A business will invest their time and money to incorporate a domain name that they trust and value. Their domain becomes an active component of their branding, marketing, and PR activities.
When the press or media picks up announcements and/or writes articles about these businesses, the domain name typically gets mentioned in the articles and press releases. This leads to further awareness, familiarity, and trust built around the domain name extensions that are mentioned most frequently in the press.

The registry paid Meltwater, a media monitoring company, to dig up all the media references to domains using any of the top 10 largest new gTLDs over the first half of the year.
It found that .club had the most mentions both empirically and adjusted for TLD size, and that .club’s media mentions had the most positive slant.
From the report (pdf):

When tracking the number of press impressions (articles) in terms of raw numbers, the top 3 were: .CLUB, with 14,519 impressions; .XYZ, with 10,770 impressions; and .ONLINE, with 9,595 impressions. When looking at the impression data against topline registration numbers, the top 3 TLDs were: .CLUB, with 13.29 impressions for every 1,000 registrations; .ONLINE, with 12.87 impressions for every 1,000 registrations; and .SITE, with 6.55 impressions for every 1,000 registrations. As for positive sentiment, the top 3 TLDs were: .CLUB, with 4,300 articles; .ONLINE, with 2,200 articles; and .XYZ with 2,189 articles.

The definition of “article” used by Meltwater is pretty broad. It’s certainly not looking at only the mainstream media.
The survey included press releases as well as editorial, and seems to include a fair bit of user-generated content, such as posts on Medium.com and Sohu.com, too.
There’s even one “article” cited that is actually just a Kickstarter crowd-funding project page.
The survey also double-counts articles, so if a press release appears on multiple sites, or an article is syndicated to multiple publications, each appearance was counted separately.
One could argue that all of this is a fair enough way to conduct such a survey — .CLUB is looking for evidence of grassroots usage and awareness, not just of coverage by publications with rigorous editorial controls.
And the methodology also called for all articles produced by or written about the registries themselves to be disregarded, presumably reducing the number of hits per registry and the chance of the results being gamed.
But a lot of the 30 articles cited directly in the Meltwater report, particularly those coming out of China, appear to be rather spammy. Others are just odd. Others offer negative views of specific new gTLD domains.
One of them is an inexplicable Chinese translation of a warning about a UK company using a .loan domain to scam people, for example.
Another is a BuzzFeed article from Japan about a fake news site using a .xyz domain to target Koreans.
Other references are so minor that even though Meltwater’s spiders spotted them I doubt many human beings would.
One of .club’s big hits is just a tiny photo credit on an stock image used in a forgettable BuzzFeed listicle, another is the Daily Mail quoting an Instagram post by an American athlete who uses a .club domain in a hashtag, the third is a self-promotional blog post on Medium.com by the owner of minicomic.club.
If these are the most prominent citations Meltwater could dig up over six months, these new gTLDs still have a way to go in terms of awareness.
But my main issue with the research is that it was limited to the top 10 new gTLDs by registration volume: .xyz, .top, .loan, .club, .win, .online, .vip, .wang, .site and .bid.
As we all know by now, there’s a correlation (at least anecdotally) between volume, low price and low quality usage/abuse.
I’d love to see subsequent reports of this nature delve into smaller TLDs, including dot-brands, that may not have as many sales but may have greater engagement and more press coverage.
The full .CLUB/Meltwater report can be found here (pdf).

XYZ junk drop sinks the industry in Q3

Kevin Murphy, December 20, 2017, Domain Registries

The total number of domains registered in the world suffered a rare period of decline in the third quarter, according to Verisign’s latest numbers.
The Q3 Domain Name Industry Brief shows September ended with 330.7 million registered names across all TLDs, a 1.2 million dip on the second quarter.
Year-on-year, there was still growth: 3.7 million domains, or 1.1%.
The shrinkage follows a flat Q2 and a slowing Q1.
The finger of blame can be primarily pointed at .xyz and .top, which lost millions of domains in the quarter due, in .xyz’s case at least, to the expiration of millions of names that had been sold for a penny or two a year earlier.
Not that you’d know this from the DNIB (pdf). For some reason Verisign doesn’t like talking about new gTLD growth rates in its reports, even when they’re going the wrong way.
Verisign’s own .com and .net grew by 1.5 million names to 145.8 million, putting ground between themselves and ccTLDs, which collectively were up by 500,000 names or 0.3% sequentially to 144.7 million.