ICM makes $4m from .xxx Founders

ICM Registry made just shy of $4 million from its Founders Program, which allocated premium .xxx domain names to porn webmasters.
As Elliot’s Blog reported, uber-domainer Frank Schilling’s Name Administration has picked up 33 .xxx domains for a seven-figure sum.
Schilling got his hands on the likes of amateur.xxx, asian.xxx, hardcore.xxx, hot.xxx, porno.xxx and many other “super premiums” domains.
He said in a statement provided by ICM:

I believe that .XXX, unlike many other new TLDs, offers SLD registrants the opportunity for long term type-in traffic. Many people navigate in a way that suggests they believe .XXX existed all along. Few strings other than .XXX share this attribute.

ICM president Stuart Lawley said that .xxx was a popular type-in TLD long before it even existed on the internet. Apparently the non-existent .web is also pretty good for traffic.
While on the face of it selling these super-premiums to a domainer may look like ICM shirking its duties to its sponsored community, Schilling like all .xxx Founders has committed to develop web sites at all of his .xxx names – the domains are not for flipping.
ICM says it has allocated some 1,500 domains to 35 registrants under the Founders Program.
Beate-Uhse, Germany’s biggest adult retailer, has picked up kostenlos.xxx (“free”) among others.
Channel 1 Releasing, a Californian gay porn publisher, has grabbed several domains related to its niche, such as muscle.xxx and jock.xxx.
I understand one UK company has also decided to rebrand its entire stable around the .xxx extension.
While many domains sold for six figures, not all Founders paid big bucks – many got their names for the standard registration fee in exchange for their development commitments.

Comment Tagged: founders program, frank schilling, icm registry, name administration, xxx

New ICANN director appointed

Filipino businesswomen Judith Duavit Vazquez has been selected to join ICANN’s board of directors.
She will take the seat being vacated by Gambian development consultant Katim Touray at the end of the ICANN meeting in Dakar October 28.
Vazquez has a pretty impressive resume covering senior roles at major telecommunications, internet and media organizations in the Philippines.
Her corporate board experience includes 20 years at GMA Network, a major player in Filipino TV and radio, and time at a few non-profits.
Board work has included seats on compensation, audit and risk management committees – useful skills given ICANN’s ongoing accountability and transparency reform work.
In terms of involvement with internet addresses, Vasquez has worked with APNIC, the Asia-Pacific regional internet registry, according to her bio.
She’s also a woman, which will have counted in her favor.
ICANN’s Nominating Committee, which selects eight of ICANN’s directors, had made no secret of the fact that it wants the board to resemble less of a sausage-fest.
German politician Erika Mann is currently the only female voting director, following the departure of lawyer Rita Rodin Johnston in Singapore.
I speculated in June that NomCom’s selection “will almost certainly be a woman from a region currently under-represented on the board. My guess is Russia.”
I was obviously wrong about Russia, and while the Asia-Pac region has hardly been under-represented in the past, Vasquez is the first ICANN director to hail from South-East Asia.
NomCom also extended recently installed chairman Steve Crocker’s term on the board, which was due to expire in October, for another three years, as was expected.
For the full list of NomCom committee appointees, see the ICANN announcement.

Comment Tagged: board, ICANN, judith duavit vazquez, nomcom

Your second chance to win a $1,000 conference pass

Congratulations to “Michael”, you’ve just won a free conference pass for newdomains.org worth $1,000 just for leaving a comment on DomainIncite.
Random.org’s random number sequence generator selected the winning order of comments earlier today, and Michael came top of the list.
His winning answer to the question of “What new gTLD(s) do you think will be successful, and why?” was:

If success is defined by the value it offers the Internet community and not by the number of registrations then I think that a cause based TLD like .Eco or .HIV will be the most successful as they will revolutionize the way we interest with charities online and show our support, ushering in a new era.

I’ve hooked the winner up with conference organizer United-Domains.
And now on to…
Competition Day Two
To be in with a chance at winning the second Full Conference pass to newdomains.org, simply:

1) Follow me on Twitter (if you’re not already doing so).
2) Send a tweet mentioning @domainincite and including the hashtag #conferencecompo

Tweets must be sent by 2359 UTC, Tuesday August 9. I’ll announce the randomly-selected winner here on Wednesday.
Again, the prize does not include transportation or accommodation, but it does include a certain amount of food and drink, along with access to all the panels and exhibits.
The show runs September 26-27 in Munich, Germany.
These Full Conference passes are currently selling for €699 ($1,000) each, so if you’re currently wondering whether or not to attend, a free ticket may help make your mind up.

5 Comments Tagged: competition, ICANN, new gTLDs, new TLDs, newdomains.org

Together at last: NetSol merges with Register.com

The first-ever .com domain name registrar and its first-ever competitor are to merge as part of Web.com’s strategy to scale up and better compete with Go Daddy.
Web.com, which bought Register.com a little over a year ago, has now turned its attention to bigger fish. It’s agreed to buy Network Solutions for $561 million in cash and stock.
The combined company will have three million customers, revenue of over $450 million, and over nine million domains under management.
By my reckoning, this means Web.com becomes the fourth-largest registrar by domain count, a position already held by NetSol, a couple of million domains behind Tucows.
NetSol was of course the original .com registrar/registry and Register.com was the first competitor to start selling domains after ICANN introduced competition to the market.
Both registrars were briefly public companies in their own right, before being re-privatized around the same time it became apparent Go Daddy and the other discount registrars were eating their lunch.
This shared history is still evident today – both companies still sell domain names for 1999 prices, and they’re both still losing customers as a result.
CEO David Brown said on a conference call announcing the deal that Register.com is currently losing 13,000 subscribers, net, per quarter.
This is not as bad as the 20,000 per quarter at the time of the acquisition, but it’s still over 140 customers jumping ship, on average, every day.
Brown said that NetSol’s churn is similar; its customer base is “declining very slowly”, albeit from a stronger starting position.
When VeriSign sold NetSol in 2003, it said the unit had about four million customers. Today, according to Web.com’s announcement, it’s closer to two million.
The NetSol deal will enable Web.com to expand its focus from small businesses, Register.com’s core market, to medium-sized businesses too, Brown said.
“This is a unique chance for Web.com to quickly gain major scale in our sweet spot – the small and mid-size business market,” he told analysts.
The larger scale will also enable the company to ramp up its marketing efforts, he said, helping it to gain mindshare from “another company” (cough–Go Daddy–cough).
Both the NetSol and Register.com brands will stay, but the primary brand in its advertising campaigns will be Web.com
Both NetSol and Register.com still operate at very much the high-end of the pricing spectrum, having stubbornly resisted pricing pressures for the last decade.
Register.com currently sells .com domain names for $38 a year, NetSol sells them for $35.
However, on the analysts’ call, Brown discussed the success of a recent marketing campaign at Register.com, which offered domains at cheaper prices than usual.
“We discovered marketing a lower-price domain name was driving a total order value that was more than ten times higher due to additional offerings,” he said.
I wonder where they got that idea from.

4 Comments Tagged: acqusiition, go daddy, network solutions, register.com, web.com

.xxx reveals new gTLD support problems

It’s late 2012. You’ve spent your $185,000, fought your way through objections, won your contention set, and proved to ICANN that you’re technically and financially capable of running a new generic top-level domain.
The registry contracts have been signed. But will your gTLD actually work?
The experiences of .xxx manager ICM Registry lately suggest that a certain amount of outreach will be needed before new gTLDs receive universal support in applications.
I’ve encountered three examples over the last few days of .xxx domain names not functioning as expected in certain apps. I expect there will be many more.
Skype. Type http://casting.com into a chat window and Skype will automatically make the link clickable. Do the same for the .xxx equivalent, and it does not.
Android, the Google mobile platform. I haven’t tested this, but according to Francesco Cetaro on Twitter, unless you manually type the http:// the domain doesn’t resolve.
TweetDeck, now owned by Twitter. It doesn’t auto-link or auto-shorten .xxx domains either, not even if you include the http:// prefix.
This problem is well known from previous new gTLD rounds. ICANN even warns applicants about it in the Applicant Guidebook, stating:

All applicants should be aware that approval of an application and entry into a registry agreement with ICANN do not guarantee that a new gTLD will immediately function throughout the Internet. Past experience indicates that network operators may not immediately fully support new top-level domains, even when these domains have been delegated in the DNS root zone, since third-party software modification may be required and may not happen immediately.
Similarly, software applications sometimes attempt to validate domain names and may not recognize new or unknown top-level domains.

As a 10-year .info registrant, I can confirm that some web sites will still sometimes reject email addresses at .info domains.
Sometimes this is due to outdated validation scripts assuming no TLD is longer than three characters. Sometimes, it’s because the webmaster sees so much spam from .info he bans the whole TLD.
This is far less of an issue that it was five or six years ago, due in part to Afilias’s outreach, but just this week I found myself unable to sign up at a certain phpBB forum using my .info address.
I understand ICM has also been reaching out to affected app developers recently to make them aware that .xxx now exists in the root and has resolvable domains.
ICANN also has released code in C#, Java, Perl, and Python (though not, annoyingly, PHP) that it says can be easily dropped into source in order to validate TLDs against the live root.
The last beta was released in 2007. I’m not sure whether it’s still under development.
(UPDATE: CentralNic CTO Gavin Brown has knocked up a PHP implementation here.)

9 Comments Tagged: android, ICANN, icm registry, new gTLDs, skype, tweetdeck, twitter, xxx

Advertisers threaten to sue over new gTLDs

The Association of National Advertisers is threatening legal action unless ICANN “abandons” its recently approved new generic top-level domains program.
Its CEO, Robert Liodice, has written to his ICANN counterpart Rod Beckstrom outlining its litany of concerns about new gTLDs.
ANA’s strongly worded arguments will be familiar territory for anyone who has been following development of the program for the last few years.
It’s worried about cybersquatting, typosquatting, phishing, as well as the cost of defensive registrations and post-launch trademark enforcement.
The organization represents 400 companies that collectively spend $250 billion every year on their brands, according to the letter.
It also claims that ICANN shirked its duties by failing to adequately consider the economic impact of the program, and that it failed to develop it in a transparent, bottom-up manner.
Liodice wrote (pdf), with my emphasis:

ICANN must not ignore the legitimate concerns of brand owners and the debilitating effect on consumer protection and healthy markets its unsupervised actions will cause. Should ICANN refuse to reconsider and adopt a program that takes into account the ANA’s concerns expressed in this letter, ICANN and the Program present the ANA and its members no choice but to do whatever is necessary to prevent implementation of the Program and raise the issues in appropriate forums that can consider the wisdom, propriety and legality of the program.

The letter ends with a bunch of legal blah about ANA’s rights and remedies, a pretty obvious indication that it’s considering its legal position.
ICANN should “abandon” the program until ANA’s concerns have been addressed, Liodice wrote.
That’s not going to happen, of course.
There’s no way ICANN can put a halt to the program without basically admitting ANA’s analysis of it has merit.
If ANA wants to stop new gTLDs from going ahead, it’s going to need to do more than send a letter.
The letter is CC’d to the US Department of Commerce and several Congressmen, which suggests that we may see another Congressional hearing into the program before too long.
But will we see a lawsuit as well?
ICANN, at least, has anticipated the likelihood of having to defend itself in court for some time.
About 30% of the the $185,000 application fee – $30 million in a 500-application round – is allocated to various “risks”, of which a legal defense fund is one component.
I’d be surprised if ICANN’s legal team hasn’t war-gamed potential claims and defenses every time the Applicant Guidebook has been updated.
The next five months are going to be very interesting times.

2 Comments Tagged: ana, association of national advertisers, cybersquatting, defensive, ICANN, new gTLDs, new TLDs

Is 80% of .xxx going to be defensive?

Is the new adults-only top-level domain going to turn out to be just as big of a trademark shakedown as some had feared?
EasySpace, a British domain name registrar, claims that 80% of its .xxx pre-orders are from organizations outside the porn industry.
“Out of the hundreds of businesses that have rushed to pre-register with Easyspace ahead of the opening of the Sunrise phase for .XXX domains on 7 September 2011, only 20% of them are from the adult industry,” the company said in a press release.
EasySpace is just one rather small registrar, of course, and its marketing of .xxx is very much in the “Protect your brand” camp, so its numbers may not necessarily hold up industry-wide.
The company is charging $189.99 ($310) for non-porn defensive registrations, an almost 100% markup on the registry fee.
Still, 80% is a big number, and likely to be used by critics not only of .xxx but of new TLDs in general.

Comment Tagged: cybersquatting, icm registry, xxx

Win $4,000 of newdomains.org conference tickets

I have four free passes for the upcoming newdomains.org conference, a total value of $4,000, which I will be giving away to lucky DomainIncite readers over the coming week.
The conference, the first in Europe to focus purely on the opportunities and challenges in ICANN’s new generic top-level domains program, is due to run September 26-27 in Munich, Germany.
The organizer, United-Domains, has generously offered to give four free “Full Conference” passes to DI readers. These are currently selling for €699 ($1,000) each.
The passes include full access to the panels (which will all be conducted in English) and the exhibits, as well as dinner, lunches and ample networking opportunities.
The prizes do not include transport to or accommodation in Munich. The passes also do not include the social event at the Oktoberfest beer festival scheduled for the second night.
See the newdomains.org site for ticket details.
I’ve agreed to participate in two of the conference panel discussions, but don’t let that put you off.
Competition Day One
There will be four random draws conducted over the coming week, with one ticket for each winner.
To be in with a chance to win the first pass, simply leave a comment on this post answering the following questions:

1) Which new gTLD(s) do you think will be successful?
2) Why?

You can define “successful” in any way you want. I will use the random number sequence generator at Random.org to select the winning order of comments, so there’s no “correct” or “best” answer.
It doesn’t have to be an already-announced gTLD bid. Any string(s) you think will be successful as a gTLD is acceptable. If you want to plug your own application, that’s okay too.
But anybody who answers “1) .com, 2) because it’s king” will be automatically disqualified.
The closing time for entries is 1159 UTC, Sunday August 7, judged by the time-stamp on the comment. The winner will be announced here on Monday. One entry per person.
Make sure to leave your comment using a genuine email address, as that is the method I’ll use to hook the winner up with the conference organizers.
The draw will be completely fair, so no asking for favors. In true ICANN spirit, if I suspect “gaming” is going on I reserve the right to unilaterally change the rules.
Okay, let’s see how this goes…

21 Comments Tagged: competition, newdomains.org, united domains

The first .xxx porn site has gone live

Casting.xxx tonight has become officially the first live porn site to use a .xxx domain name.
It’s very not safe for work, of course, but if you head over there right now you can watch a handful of streaming videos, according to sources.
Casting.xxx is the first site to use a domain granted under ICM Registry’s Founders Program, which let the registry sell off or basically give away premium names to publishers.
ICM says it’s allocating about 1,500 domains to about 35 Founders, which is quite a lot more domains than I was expecting.
The .xxx top-level domain has been active in the domain name system for a few months now, but to date the only resolving domains have been those belonging to registry manager ICM.
Casting.xxx is registered to a Really Useful Ltd, which appears to have been set up purely to build sites on .xxx domains, of which casting.xxx is the first of several.
The .xxx sunrise period begins next month, with landrush in November and general availability slated for December.

3 Comments Tagged: casting.xxx, founders program, landrush, sunrise, xxx

Breaking: CentralNic regains control of gb.com

CentralNic has taken back control of gb.com, which was seized without warning by the company’s founder at the weekend.
The domain gb.com now resolves to CentralNic’s site, and the company has posted the following message:

The CentralNic service for domains ending in .gb.com has been fully restored. We apologize for any inconvenience – the interruption was effected without any warning by a third party, and was therefore out of our control.

The pseudo-TLD service, which serves primarily UK small businesses that couldn’t get the .co.uk they wanted, went down on Saturday, leaving registrants confused and angry.
I’ve reached out to CentralNic for comment and will update when I have more information.

1 Comment Tagged: centralnic, gb.com