Web.com acquires dozens of registrars from Rightside

Web.com has acquired dozens of registrars from rival/partner Rightside, seemingly to boost the success rate of its SnapNames domain drop-catching business.
I’ve established that at least 44 registrars once managed by Rightside/eNom have moved to the Web.com stable in recent weeks, and that might not even be the half of it.
All of the registrars in question are shell companies used exclusively to register pre-ordered names as they are deleted by registries, usually Verisign.
The more registrars you have, the more EPP connections you have to the Verisign registry and the better your chance at catching a domain.
Web.com runs SnapNames, and is in a 50-50 partnership with Rightside on rival drop-catcher NameJet.
The two compete primarily with NameBright’s DropCatch.com, which obtained hundreds of fresh ICANN accreditations last year, bringing its total pool to over 750.
Web.com has fewer than 400 accreditations right now. Rightside has even fewer.
It’s usually quicker to buy a registrar than to obtain a new accreditation from ICANN.
If Web.com finds itself in need of more accreditations in order to compete, and Rightside is happy to let them go, it could be possible to infer that SnapNames is doing rather better in terms of customer acquisition than NameJet.
But the two services recently announced a partnership under which names grabbed by either network would be placed in an auction in which customers of either site could participate.
This would have the effect of increasing the number of caught names going to auction due to there being multiple bidders, and thus the eventual sales prices.

2 Comments Tagged: dropcatch.com, enom, namebright, network solutions, rightside, snapnames, web.com

Rightside to modernize eNom, predicts $75m new gTLD revs

Rightside used its first quarter earnings call yesterday to address, albeit indirectly, some of the criticisms recently leveled at it by activist investors and competitors.
CEO Taryn Naidu revealed for the first time how the company sees the new gTLD market playing out in the longer term.
He said than in three to five years, Rightside expects annual revenue from its registry business to come it at $50 million to $75 million.
That’s a hell of a lot more than it makes today.
In the first quarter, registry revenue was $2.6 million, compared to $1.6 million a year ago. Annualized, that’s a shade over $10 million.
On the back of an envelope, Rightside seems to need roughly 50% growth per year over five years to hit the low end of its target.
Naidu told analysts that one factor built into this projection is that third-party registrars will start to sell just as many new gTLD domains as Rightside’s registrars do.
Currently, Rightside sees 15% to 20% new gTLD, but with others it’s 3% to 5%, he said.
Naidu said he expects margins to be 20% at the EBITDA level.
The revelation of these targets may go some way to address investor concerns that Rightside is putting too much effort into its new gTLD business at the expense of its cash-generating registrars.
J Carlo Cannell of Cannell Capital expressed these views and others in March, and was supported by fellow investor Frank Schilling, CEO of Uniregistry.
Naidu last night also addressed concerns about eNom, which Cannell had called a “time capsule” due to its aging user experience.
He admitted that eNom is “encumbered by some older technology” but said it was being fixed.
“Later this quarter we will be rolling out the first phase of our development efforts, which include a dramatically revamped user interface, a new suite of software development tools and a new developer hub to help our partners learn, develop and test faster,” he said.
The registrar business brought in $44 million in the quarter, up from $41.9 million. Aftermarket revenue was $9.3 million compared to $7.3 million.
Overall, revenue was up 9% at $55.1 million, with a net loss of $5.1 million. That compared to income of $1.9 million a year ago.
Naidu also seemed to obliquely address the criticism that a lot of Rightside’s new gTLDs are shit — .democrat, .dance, .army, .navy, and .airforce have been singled out by Cannell and others — by talking about how the company doesn’t necessarily put the same amount of effort into marketing its whole stable.
Some gTLDs will be marketed more heavily later, he said, comparing it to a real estate owner holding on to parcels of land for later development.
Naidu also talked up Rightside’s prospects in China, where apparently .pub is doing quite well because registrants think it means “public” rather than “drinking establishment”.

2 Comments Tagged: cannell, earnings, enom, new gTLDs, rightside

.flir becomes the 1,300th TLD

There are now 1,300 top-level domains live on the internet.
The milestone was hit today when the dot-brand .flir was delegated to FLIR Systems, a $1.5 billion-a-year thermal imaging systems manufacturer.
Its nic.flir domain is now live and currently redirects to existing sites in other TLDs.
According to the DI database, there are 292 ccTLDs, of which 45 are internationalized domain names.
There are 1,008 gTLDs of which 84 are IDNs; 985 were applied for in the 2012 new gTLD application round.
Of the gTLDs, 347 are dot-brands (defined as where the registry has signed Spec 9 and/or Spec 13 of the new gTLD Registry Agreement).

Comment Tagged: flir, iana, ICANN, new gTLDs

ZACR wades into .africa lawsuit, tells judge he screwed up

ZA Central Registry has told the judge in DotConnectAfrica’s lawsuit against ICANN that the preliminary injunction he granted DCA recently was based on a misunderstanding.
The injunction, granted a month ago, prevents ICANN delegating the .africa gTLD to ZACR until the lawsuit reaches a conclusion.
But, in papers filed Friday, ZACR points out that the judge screwed up in his reasoning. Judge Gary Klausner’s ruling was “predicated upon a key factual error”, ZACR says.
The error is the same one I wrote about last month — the judge thinks DCA originally passed the Geographic Names Review of its Initial Evaluation for .africa, and that ICANN later failed it anyway.
In fact, DCA never passed the GNR, and the document the judge cites in his ruling is actually ZACR’s Initial Evaluation report.
The GNR is the bit of the evaluation where both .africa applicants had to prove they had support from 60% of African governments and no more than one African governmental objection.
ZACR said in one of its Friday filings (pdf):

The record is undisputed that DCA’s application had not passed the geographic names evaluation process. And it could not because DCA did not have the requisite support of 60% or more of the African Union governments. Further, DCA’s application had been the subject of 17 “Early Warning” submissions by African Union governments. Correcting for this factual error, the record is clear that DCA has no likelihood of success in this litigation.

ZACR also says Klausner erred by saying .africa could only be delegated once, saying that TLDs can be redelegated to different operators after their initial delegation.
It’s filed a motion asking the judge to “reconsider and vacate” his preliminary injunction ruling.
ZACR is now named as a defendant in the lawsuit, which originally only named ICANN and unidentified parties.
ICANN has dropped its motion to dismiss the case and last week filed its answer (pdf) to DCA’s complaint, in which it denies any wrongdoing.
ICANN appears to be happy to let the judge’s mistake slide, or at least to allow ZACR to burden the risk of potentially pissing him off by highlighting his error.

Comment Tagged: africa, dotconnectafrica, ICANN, lawsuit, new gTLDs, zacr

With Zika fears, is ICANN dissing Latin America?

Internet organizations in Latin America are pissed off with ICANN for cancelling its Panama public meeting and potentially cancelling its Puerto Rico meeting.
They said that the cancellations will have “a direct negative impact on the participation of our communities in the region, since they view these meetings as favorable opportunities to get together for the development of their respective work agendas, leveraging geographic and cultural proximity.”
“This has a direct effect on the development of the Internet in our regions,” they added.
The comments came in a May 5 letter (pdf) from the Latin America and Caribbean Internet Addresses Registry (LACNIC) the Latin America and Caribbean TLD Association (LACTLD) and the Latin America and Caribbean Association of Internet Exchange Points (LAC-IX).
Together, they represent IP addressing, ccTLDs and internet exchanges in the region.
ICANN recently switched its ICANN 56 venue from Panama to Finland due to the Zika virus outbreak in the region.
It is also expected to relocate ICANN 57 from Puerto Rico to Las Vegas, for the same reason, though no decision has yet been made.
The letter claims that the LAC region is being under-served in terms of ICANN meeting time.
While ICANN’s goal is to rotate its meetings through its five regions, the letter says that the LAC region only gets one out of six meetings.
But is the region getting fewer meetings than elsewhere? I don’t think the numbers support that assertion.
This is how all the meetings to date break down by ICANN region.
[table id=40 /]
It’s clear that LAC isn’t getting singled out in particular for a dissing, no more than Africa or North America.
In fact, LAC may be doing better than North America, due to the weird way ICANN assigns countries to regions.
The Caribbean island of Puerto Rico (where ICANN met in 2007) counts as North America as far as ICANN is concerned, due to its status as a US territory.
ICANN counts Mexico (where it met in 2009), which is geographically North American, as a LAC nation for some reason.
But the three organizations signing this letter all count both Mexico and Puerto Rico as LAC nations. By that definition, they’ve had 11 meetings to North America’s nine, placing LAC in the middle of the table with exactly one out of every five meetings taking place there.
ICANN chair Steve Crocker did not dissect the numbers in his reply (pdf) yesterday, instead focusing on sympathizing with the LAC groups’ concerns and pointing out that finding suitable locations for ICANN meetings is extremely tricky.
“On rare occasions, due to events outside ICANN’s control, we face challenges sufficiently severe that we feel we cannot proceed with meetings in the venue we have planned,” Crocker wrote.
He continued: “[I]t is our understanding that the Zika virus poses a serious threat to human health. We have consulted extensively on risks and considered whether under the circumstances we can hold an efficient and safe meeting. In this instance we have decided this is a serious risk and decided to go to an alternate venue for the safety of our community.”

2 Comments

Donuts wins .doctor

Donuts has emerged the victor of the .doctor gTLD contention set.
Competing applicants Radix and The Medical Registry both withdrew their applications last week.
The string wasn’t due to head to its ICANN last-resort auction until May 25, indicating that the contention set was settled privately.
.doctor has been the subject of some controversy.
ICANN’s Governmental Advisory Committee had insisted that .doctor should be reserved purely for licensed medical doctors.
Donuts had complained that this would rule out use by any of the myriad other types of doctor, as well as registrants using “doctor” in a fanciful sense (like “rug doctor” or “PC doctor”).
ICANN initially accepted the GAC advice, but changed its mind this February, declining to impose such restrictive language on .doctor’s contractual Public Interest Commitments.
So it seems that .doctor will be generally unrestricted.
Donuts will have to sign up to the standard “Category 1” PICs, which require the registry to work with relevant regulatory bodies, however.

1 Comment Tagged: .doctor, donuts, gac, ICANN, new gTLDs, radix

African brands wiped off the map as ICANN flips the kill switch on 10 gTLDs

Ten dot-brand gTLDs may never see the light of day, after ICANN sent termination notices to the applicants.
The move means that the number of African-owned dot-brand gTLDs to go live in the current round will be precisely zero.
The 10 affected gTLDs are .naspers, .supersport, .mzansimagic, .mnet, .kyknet, .africamagic, .multichoice, .dstv and .gotv, which were applied for by four South African companies, and .payu, which came from a Dutch firm.
In each case, the applicant had signed a Registry Agreement with ICANN in early 2015, but had failed to actually go live in the DNS within the required 12-month window.
All had deadlines in February or March but failed to meet even extended deadlines.
The condemned gTLDs make up more than half of the total applications originating in Africa.
Of the original 17 African applications, only ZACR’s .joburg, .capetown and .durban city gTLDs have actually been delegated.
Another application, the generic .ummah from Ummah Digital of Gambia, was withdrawn in 2013.
The League of Arab States’ .arab and عرب. are both currently in pre-delegation testing, having signed ICANN contracts in November.
The remaining two applications are both for .africa, which is currently stuck in litigation.
We’re looking at a maximum of six African-owned gTLDs, of a possible 16, going live in the 2012 round.
ICANN was criticized back in 2012 for not doing enough to raise awareness of the new gTLD program, criticisms that have been raised again recently as the community starts to seriously look at how things can be improved for the next round.
UPDATE: This article originally stated that .ummah was a dot-brand application. It was not. The text has been corrected accordingly.

4 Comments Tagged: africa, dot-brands, ICANN, new gTLDs

GoDaddy grows domain revs 10% in Q1

GoDaddy reported its first quarter numbers last night, which including an almost 10% increase in revenue from domain names.
The market-leading registrar reported a net loss of $18.3 million, smaller than the $43.4 million a year ago, on total revenue of $433.7 million, up 15.3%.
It broke out its revenue from domain names as $218.9 million, up 9.9% on Q1 2015.
Hosting-related services and business applications grew 14.4% and 47.4% respectively, to $160.4 million and $54.4 million.
The company raised its revenue expectations for the year to a range of $1.83 billion to $1.845 billion.

Comment Tagged: earnings, godaddy

A third of mayoral candidates using .london domains

Londoners are going to the polls today to select a new mayor so, as a Londoner, I thought I’d check out how many of the candidates are supporting the local domain name.
Turns out four of the 12 candidates have registered .london domains for their campaign sites.
The four are favorite Sadiq Khan (Labour), Sian Berry (Green), Peter Whittle (UK Independence Party) and Prince John Zylinski (damned if I know).
The remaining candidates, if they have dedicated sites at all, use a mixture of .com, .org and .net domains. Not a .uk to be seen.
Will this influence anybody’s vote? No. Has it raised the profile of .london domains? Probably.
Whoever wins the election will find themselves with a degree of control over the future of .london.
While the registry is basically managed by Minds + Machines, the ICANN contract is held by London & Partners, a not-for-profit promotional agency funded by the mayor’s office. The mayor is also a partner in the endeavor.
The M+M outsourcing contract was recently renegotiated in light of M+M’s financial woes, but details have not been made available.

2 Comments Tagged: .london, elections, mayor, Minds + Machines

Former GoDaddy VP apes Trump in Congressional bid

Former GoDaddy general counsel and apparent glutton for punishment Christine Jones is to run for political office for a second time.
She’s looking for the Republican nomination in Arizona’s Fifth Congressional District, she said in an email circular yesterday.
In a video announcing the candidacy, it seems pretty clear she’s taking a leaf out of the Donald Trump playbook by playing the “outsider” card.
“She’s one of us, not a politician,” a talking head says in a totally unrehearsed, unscripted and utterly convincing soundbite.

Much like Trump, she’s also touting the fact that she’s “independently wealthy” and therefore not as reliant on big donors to fund her campaign.
According to Jones’ web site, the most important issues facing Arizonians are border security, Islamic State, abortion (she’s anti-), an overly complex tax system and gun ownership (she’s pro-).
It sounds ridiculous, but this is what passes for mainstream politics in the US nowadays.
The incumbent in the Congressional seat she wants, considered safely Republican, recently announced his retirement, but Jones will face at least three established local politicians in the contest for the nomination.
Jones stood for the Republican nomination for Arizona Governor in 2014, but came third in the seven-strong field, with 16.6% of the vote.

5 Comments Tagged: christine jones, congress, godaddy