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XYZ expands gTLD stable as L’Oreal exits the domain game

Kevin Murphy, February 5, 2020, Domain Registries

XYZ.com has acquired four new gTLDs from the cosmetics company L’Oreal.
The portfolio registry expanded its stable with the additions of .makeup, .beauty, .hair and .skin, all of which had their contracts change hands last month, ICANN records show.
XYZ seems to have told Domain Name Wire last week that it plans to relaunch its new acquisitions this year alongside another recent purchase, .quest (sorry for the delay, Andrew, I’ve been sick).
For L’Oreal, the deal marks the end of its lofty ambitions in the new gTLD space. The company applied for 14 strings back in 2012, a mixture of generic dictionary words and brands.
Now, none remain.
A bunch of its dot-brand applications were dumped prior to contract signing. The others were turned off, unused, after L’Oreal asked ICANN to terminate its contracts.
The four non-branded strings XYZ picked up were originally intended as “closed generics” — an attempt to close competitors out of the market for industry-relevant keywords — but that was scuppered when ICANN decided to ban the concept.
L’Oreal attempted to worm its way around the ban by pricing domains at $5,500 wholesale and imposing extremely restrictive registration policies. This was pretty effective at warding off unwanted sales.
But the company did actually attempt something fairly innovative with .makeup, as I documented in 2017, registering the names of a couple hundred beauty-obsessed social media influencers in an attempt to create a registry-owned social media portal focused on pushing L’Oreal products.
The hub site, at welove.makeup, now bounces web visitors to makeup.com.
To the best of my knowledge, L’Oreal didn’t do anything with its other generics.
Still, L’Oreal’s loss is XYZ’s gain. All four are fairly strong strings that could find a market, in my view.
XYZ now has 13 gTLDs under direct contract (12 of which were acquired post-2012) and partial stakes, with Uniregistry, in three others.

Amazon governments vow revenge for “illegal and unjust” ICANN decision on .amazon

Kevin Murphy, January 17, 2020, Domain Policy

The eight nations of the Amazon Cooperation Treaty Organization are unhappy that ICANN is giving .amazon to Amazon the retailer and have vowed to spread the word that ICANN has acted “illegally”.
ACTO secretary general Alexandra Moreira has written (pdf) to ICANN CEO Göran Marby to say: “We consider this decision an illegal and unjust expropriation of our culture, tradition, history and image before the world.”
She said that ACTO is now “committed to disseminating news of this situation to all relevant groups”, adding:

the international community should be aware of the very real consequences or ramifications (be it economic, environmental, cultural or related to questions of sovereignty) of granting exclusive access to the domain “.Amazon” to a single company.

The delegation of .amazon to Amazon the company, “jeopardizes the continued well-being of the societies that live there”, she wrote, with no elaboration.
Amazon was last month told it could have the gTLD after a years-long battle with ACTO and the ICANN Governmental Advisory Committee, which had advised ICANN by consensus to reject the .amazon application.
That consensus broke last year when the US government basically said enough was enough and refused to continue back the eight South American governments’ plight.
Under the terms of Amazon’s contract, it has to protect hundreds of culturally sensitive second-level domains of ACTO’s choosing, and to give each of its members a single domain that they can use to promote their portion of the Amazonian region.
ACTO had wanted more, basically demanding joint ownership of .amazon, which Amazon refused.
It remains to be seen whether ACTO’s reaction will be limited to harsh language, or whether its members will actively try to disrupt ICANN activities. The next GAC-ICANN face-to-face, set for Cancun in March, could be interesting viewing.

Ten years ago I predicted Oscar winners wanted a .movie gTLD. Was I right?

Kevin Murphy, January 14, 2020, Domain Registries

Almost 10 years ago, when DI was barely a month old, I looked at that year’s Oscar nominees and predicted that a .movie gTLD could find some demand in the movie industry. Was I right?
Of course I was. As regular readers know, I’m always right. Apart from those times I’m wrong.
In 2010, there was no .movie gTLD and no publicly announced applications, but I noted at the time that almost half of the 50 nominated movies that year included the word “movie” immediately before the dot.
This year, there were 52 nominated movies across all categories (I’m well aware that this is a pretty small sample size to draw any conclusions from, but this post is just a bit of fun) so one might reasonably expect there to be roughly 25 official sites using .movie domains among them.
There are not. Only nine of the films, including four of the nine Best Picture nominees, use freshly registered .movie domains for their official sites.
These include the likes of 1917.movie, thecave.movie, joker.movie, onceuponatimeinhollywood.movie and littlewomen.movie.
.movie, managed by Donuts, has been around since August 2015. It competes with Motion Picture Domain Registry’s .film, which was not used by any of this year’s Oscars hopefuls.
What about the rest of this year’s nominees? Did they all register fresh .com domains for their movies?
No. In fact, only 10 of the 52 movies appear to have registered new .com domains for their official sites — one more than .movie — including two of the Best Picture nominations.
These fresh .com regs include domains such as parasite-movie.com, richardjewellmovie.com, ilostmybodymovie.com, forsamafilm.com and breakthroughmovie.com.
One movie — Honeyland, a North Macedonian environmentalist documentary about bees — uses a .earth domain.
I discovered today that, rather brilliantly, the Japan-based .earth registry demands registrants “voluntarily pledge to become ambassadors for Earth and do away with actions that harm Earth and its inhabitants” in its Ts&Cs.
So, of the 52 nominated movies, only 20 opted to register a new domain for their official site — down from 24 in 2010 — and that business was split evenly between .com and new gTLDs.
Whether the movies opted for a .movie domain appears to depend in large part on the distributor.
Sony appears to be a bit of a fan of the gTLD, while Fox, Disney and Warner tend to use after-the-slash branding on their existing .com domains for their films’ official sites.
I tallied 17 movies that have their official sites on their distributor’s .com/.org domain.
There are also trends that I could not have predicted a decade ago, such as the rise of streaming services. Back in 2010, Netflix was still largely a DVD-delivery player and was not yet creating original content.
But this year, seven of the Oscar-nominated movies were made and/or distributed by Netflix, and as such the official web site is the same place you go to actually watch the film — netflix.com.
A few of the nominated animated shorts don’t need official sites either — you just head to YouTube to watch them for free.
There are currently only about 3,200 domains in the .movie zone file, about 1,200 fewer than rival .film. It renews at over $300 a year at retail, so it’s not cheaper than the alternatives by a long way.

.gay prices and availability revealed as registry promises to give 20% of revenue to charity

Kevin Murphy, January 10, 2020, Domain Registries

The long-fought, once-controversial gTLD .gay is to launch a month from now.
Top Level Design, which won the string at auction against three other applicants last February, this week informed registrars that its sunrise period will begin February 10 this year. General availability will start May 20.
The registry, which beat a mission-focused, restricted “community” applicant for .gay, also said that it will give 20% of its top-line registration revenue to two LGBT charities — GLAAD and CenterLink.
With base registry fee of $25 per domain, that’s at least $5 going to gay charities for every domain sold. Registrars are being encouraged to match that donation at the retail level.
There will also be six tiers of “premium” domains — $100, $250, $650, $2,000, $5,000 and $12,500 — for which the 20% donation will also apply. Premium domains will renew at premium prices.
Top Level Design also says it is to enforce an anti-bullying policy. Any registrant using a .gay domain for “harassment, threats, and hate speech” will stand to lose their name. It’s a complaint-based enforcement policy; the registry will not actively monitor content.
Registrants who have forums on their .gay web sites will also have to police their user-generated content, to keep it in line with registry policy.
Its official policy even includes helpline numbers for bullied gay people who are feeling suicidal.
The registry appears to be making the right noises when it comes to calming concerns that an unrestricted, non-community .gay space could do more harm than good.
The key area where it diverges from the community application, which had been backed by dozens of gay-rights groups, is the lack of a ban on pornography. I’d hazard a guess that a good chunk of registration volume will come from that space.
The launch will comprise two sunrise periods and an early access period, before .gay goes to GA.
The first sunrise is the ICANN-mandated period, open only to those trademark owners with listings in the official Trademark Clearinghouse. That will run from February 10 to March 31. A second sunrise will be open to other trademarks, validated by back-end provider CentralNic. That runs from April 6 to May 6.
Both sunrise periods will include the automatic reservation of 10 potentially confusing Latin internationalized domain name variants, generated by CentralNic algorithm. This will include strings that transpose 0 and O or e and ë, for example.
EAP, the period in which early birds can grab the names they want for premium fees that decrease every day, runs from May 11 to May 17. Prices are not yet available.
GA is May 20.
Top Level Design originally planned to launch .gay last year, timed to coincide with National Coming Out Day in the US.
The new GA date appears to land on the anniversary of a landmark gay rights ruling in the US Supreme Court, Romer v Evans, but this may just be a coincidence.
.gay is launching about a month before the 50th anniversary of the Stonewall Riots, in June, so we might see some marketing around that event.
Registrars signing up to sell .gay domains are also being given some schooling, apparently courtesy of GLAAD, about what language is currently cool and uncool to use in marketing.
Apparently, the terms “homosexual”, “sexual preference” and “transvestite” are considered offensive nowadays and are therefore verboten in registrar marketing. “Queer”, as a partially reclaimed offensive term, should be used with caution.
I suppose Top Level Design had better hope the word “gay” is not added to this list any time soon, otherwise it has a serious problem on its hands.

ICANN predicts shrinkage in new gTLD sector

Kevin Murphy, January 3, 2020, Domain Policy

ICANN will make less money from new gTLDs in its fiscal 2021 because fewer domains will be registered and renewed, according to its recently published draft budget.
The budget, released the day ICANN broke up for its Christmas holidays, shows that the organization expects to bring in $140.4 million in FY21, up a modest $300,000 on its FY20.
But it’s expecting the amount of money contributed by registries and registrars in the new gTLD sector to decline.
For FY21, it expects new gTLD registry transaction fees — the $0.25 paid to ICANN whenever a domain is registered, renewed or transferred — to be $5.1 million. That’s down from the $5.5 million currently forecast for FY20.
It expects registrar transaction fees for new gTLD domains to dip from $4.6 million to $4.3 million.
But at the same time, ICANN is predicting growth from its legacy gTLD segments, which of course are primarily driven by .com sales. All the other legacy gTLDs of note, even .org and .net, are currently on downward trajectories in terms of volumes.
For FY21, ICANN is forecasting legacy gTLD registry transaction fees to come in at $52.6 million, versus the $50.5 million it expects to see in the current FY20. In percentage terms, it’s about double the growth it’s predicting for the current FY.
Legacy gTLD registrar transaction fees are estimated to grow, however, from $31.2 million to $32.7 million.
In terms of fixed fees — the $25,000 every new gTLD registry has to pay every year regardless of transaction volume — ICANN is also predicting shrinkage.
It reckons it will lose a net seven registries in FY21, dropping from 1,170 to 1,163 by the end of June 2021. These are most likely dot-brand gTLDs that could follow the path of 69 predecessors and flunk out of the program.
ICANN also expects its base of paying registrars to go down by 100 accreditations, with no new registrar applications, causing fees to drop from $10.7 million this year to $9.6 million in FY21.
In short, it’s not a particularly rosy outlook for the gTLD industry, unless you’re Verisign.
ICANN’s financial year runs from July 1 to June 30 this year, and usually the December release of its draft budget includes some mid-year reevaluations of how it sees the current period playing out. But that’s not the case this time.
ICANN appears to be on-budget, suggesting that it’s getting better at modeling the industry the more years of historical transaction data it has access to.
The budget (pdf) is now open for public comment. I spotted a few errors, maybe you can too.

Amazon beats South America! Dot-brand contracts now signed

Kevin Murphy, December 23, 2019, Domain Policy

Amazon has prevailed in its seven-year battle to obtain the right to run .amazon as a branded top-level domain.
The company signed contracts for .amazon and the Chinese and Japanese translations on Thursday, despite years-long protests from the eight South American governments that comprise the Amazon Cooperation Treaty Organization.
This means the three gTLDs are likely to be entered into the DNS root system within a matter of weeks, after ICANN has conducted pre-delegation testing to make sure the registry’s technical systems are up to standard. The back-end is being provided by Neustar, so this is pretty much a formality.
.amazon is pretty much a done deal, in other words, and there’s pretty much nothing ACTO can do within the ICANN system to get the contract unsigned.
ACTO was of course angry about .amazon because it thinks the people of the Amazonia region have greater rights to the string than the American e-commerce giant.
It had managed to muster broad support against the gTLD applications from its Governmental Advisory Committee colleagues until the United States, represented on the GAC by the National Telecommunications Administration did a U-turn this November and withdrew its backing for the consensus.
This coincided with Amazon hiring David Redl, the most-recent former head of the NTIA, as a consultant.
The applications were originally rejected by ICANN due to a GAC objection in 2013.
But Amazon invoked ICANN’s Independent Review Process to challenge the decision and won in 2017, with the IRP panel ruling that ICANN had paid too much deference to unjustified GAC demands.
More recently, ACTO had been demanding shared control of .amazon, while Amazon had offered instead to protect cultural interests through a series of Public Interest Commitments in its registry agreements that would be enforceable by governments via the PIC Dispute Resolution Procedure.
This wasn’t enough for ACTO, and the GAC demanded that ICANN facilitate bilateral talks with Amazon to come to a mutually acceptable solution.
But these talks never really got underway, largely due to ACTO internal disputes during the political crisis in Venezuela this year, and eventually ICANN drew a line in the sand and approved the applications.
After rejecting an appeal from Colombia in September, ICANN quietly published Amazon’s proposed PICs (pdf) for public comment.
Only four comments were received during the month-long consultation.
As a personal aside, I’d been assured by ICANN several months ago that there would be a public announcement when the PICs were published, which I even promised you I would blog about.
There was no such announcement, so I feel like a bit of a gullible prick right now. It’s my own stupid fault for taking this on trust and not manually checking the .amazon application periodically for updates — I fucked up, so I apologize.
PICs commenters, including a former GAC vice-chair, also noticed this lack of transparency.
ACTO itself commented:

The proposed PIC does not attend to the Amazon Countries public policy interests and concerns. Besides not being the result of a mutually acceptable solution dully endorsed by our countries, it fails to adequately safeguard the Amazon cultural and natural heritage against the the risks of monopolization of a TLD inextricably associated with a geographic region and its populations.

Its comments were backed up, in pretty much identical language, by the Brazilian government and the Federal University of Rio de Janeiro.
Under the Amazon PICs, ACTO and its eight members each get a .amazon domain that they can use for their own web sites.
But these domains must either match the local ccTLD or “the names of indigenous peoples’ groups, and national symbols of the countries in the Amazonia region, and the specific terms OTCA, culture, heritage, forest, river, and rainforest, in English, Dutch, Portuguese, and Spanish”.
The ACTO nations also get to permanently block 1,500 domains that have the aforementioned cultural significance to the region.
The ACTO and Brazilian commenters don’t think this goes far enough.
But it’s what they’ve been given, so they’re stuck with it.

Russian company approved as gTLD escrow provider

Kevin Murphy, December 16, 2019, Domain Policy

ICANN has approved Russian internet exchange point MSK-IX as its 10th gTLD data escrow provider.
The organization said that week that Joint Stock Company “Internet Exchange “MSK-IX” has been added to its roster of companies fighting for gTLD registries escrow business.
MSK-IX is mainly in the business of operating an internet peering hub — a location where ISPs can connect their networks to backbones and to each other — in Moscow.
It becomes the fourth escrow provider in Europe, and the only one in Europe outside of the EU.
There are also five approved providers in Asia and only one — original provider Iron Mountain — in North America.
ICANN says it is not currently looking for any more providers.
gTLD registries are contractually obliged to periodically put their domain and registrant data into escrow, on the off-chance they go out of business and domains need to be transferred to a different company.

As pricey .new launches, Google reveals first set of big-name users including rapper Drake

Kevin Murphy, December 4, 2019, Domain Registries

Google Registry has opened up its .new gTLD for registration for the first time, but whether you get to buy one or not will depend on a team of Google judges.
The company opened up its “Limited Registration Period” on Monday, and it doing so revealed a bunch of early-adopter registrants including eBay, Bitly, Spotify, Github, Medium, Stripe and the Canadian musician Drake.
It’s not an open registration period. If you want a .new domain you’re going to need to present Google with a business case, showing how you intend to use your chosen domain.
These applications will be judged by Google in seven roughly month-long batches, the first of which ends January 5 and the last of which ends June 21 next year.
Competing applications for the same domain in the same batch will be decided in a beauty contest by Google itself. Needless to say, if you’re champing at the bit for a .new domain, you’ll be wanting to apply in as early a batch as possible.
If you’re lucky enough to get to register a domain, you’ll have 100 days to put it to its promised use, otherwise Google will suspend the name and keep your money.
Registry pricing has not been disclosed, but 101domain is listing .new names at $550 retail. You need the nod from Google before you get to buy the domain from a registrar.
Google says the pricing, which it acknowledges is “high”, is partly to pay for ongoing compliance monitoring. If you run a paid-for service in a .new domain, you’ll have to give Google a free account so it can check you’re sticking to your original plan.
It seems Google is going to be fairly strict about usage, which as I’ve previously reported is tied to “action generation or online creation flows”.
What this basically means is that when you type a live .new domain into your browser, you’ll be taken immediately to a page where you can create something, such as a text document, graphic design, auction listing, or blog post.
The only exception to this rule is when the web site needs a user to be logged in and redirects them to a login page instead. Most of the first tranche of registrants are currently doing this.
Google’s own .new domains include doc.new, which takes uses to a fresh sheet of blank paper at Google Docs.
The gTLD’s major anchors tenants have now been revealed at registry web site whats.new, and they include:

  • eBay: type sell.new into your browser address bar and you’ll be taken to a page where you can create a new auction/sales page.
  • Medium: story.new takes you to a blog post creation page.
  • Spotify: create a new music playlist at playlist.new
  • Webex: open up a web conference at webex.new or letsmeet.new.
  • Bitly: create a shortened link at link.new.
  • OVO Sound: this is a record label in the Warner Music stable, founded by Drake. It currently appears to be being used to plug two of OVO’s artists, which I think is a horrible waste of a nice domain. There’s no “content creation” that I can see, and I reckon it could be a prime candidate for deletion unless “listen to this crappy Drake song” counts as “action generation”.

There are a few more anchor tenants publicized at whats.new, but you get the idea.
.new will enter general availability next July.

Three more dot-brands fizzle out. Total now 69, dudes

Kevin Murphy, December 4, 2019, Domain Registries

Three more dot-brand registries have opted to kill off their own gTLDs, bringing the total to date to 69.
The three self-terminating gTLDs, which all informed ICANN of their intentions in October and November, are: .工行 (.xn--estv75g), .nadex and .vistaprint.
The .vistaprint termination is perhaps of note, given that online printing company Vistaprint was one of the bidders in the 2016 auction of .web, due to its application for .webs being ruled confusingly similar.
It wound up paying just a dollar for that gTLD, due to the complexity of the .web contention set, but even that appears to have been a defensive move.
Since then, Vistaprint has also terminated its .vista contract, and my records show that it has been “in contracting” with ICANN for .webs since August 2016. Clearly, it’s in no rush to ever actually use the thing.
Also noteworthy, .工行 becomes only the second internationalized domain name gTLD to self-terminate, after Walmart called it quits on its pre-delegation contract for .一号店.
.工行 was owned by the state-owned Industrial and Commercial Bank of China (ICBC), which by many measures is the largest bank in the world. It had revenue of over $105 billion last year, so whatever factors drove its decision to dump its dot-brand, cost was not one of them.
Finally, Nadex, an online stock-trading platform, evidently couldn’t find a use for .nadex, so it’s jumped ship too.
Hundreds of dot-brands remain, collectively managing thousands of domains and web sites.

Governments kill off another gTLD bid

Kevin Murphy, November 26, 2019, Domain Registries

Another proposed new gTLD has been killed off by governmental intervention.
A Thailand-based company call Better Living Management Company applied for .thai back in 2012, but quickly ran into opposition from the Thai government, which thought the string too culturally sensitive.
The ICANN Governmental Advisory Committee did not object to Thailand’s objection, and issued consensus advice asking ICANN to reject the application, which it did in November 2013.
BLM filed an Independent Review Process complaint in April 2014, alleging irregularities within the GAC, but the appeal was quickly shelved.
Now, five years later, the company has finally withdrawn it application, meaning it gets most of its application fee back as a refund.
Part of the reason the application failed is likely the fact that the Thai ccTLD registry, Thai Network Information Center Foundation, already runs the internationalized domain name ccTLD .ไทย, which means “.thai” in Thai.
Other applications to be killed off by GAC advice include .islam, .halal, .gcc and one of the .africa bids.