Role of registries shifting as new TLDs are introduced, likely in 2012.
The traditional role of a registry has been the technical coordination of top level domain names. In fact, many registries have deliberately not looked at themselves as promoters of their TLDs, and only technical service providers.
That has changed a bit over the past few years as registries realized it takes more than putting a domain out there to get a good customer base. And it’s about to change a lot more when new top level domain names are released en masse.
Most new TLDs will be business ventures. The typical business venture will be to make money selling second level registrations of a generic or niche top level domain — be it .movie, .nyc, or .surf. To make these TLDs successful the registry’s primary activity must be marketing. (In fact, what I’m referring to as a registry might not be an accurate description. Most new TLDs will be run by a “registry” in name only; they’ll be business ventures using an established registry provider on the back end.)
How will that change things?
First, the idea of the registry being merely the steward for the TLD will go out the window. Yes, currently registries are mostly a shoe-in to continue running a registry with “presumptive renewal” at the end of their term. But they are also heavily restricted in what they can do while operating the domain. They can’t build a brand around themselves; they must do it around the TLD and at least pretend that they don’t actually own the TLD.
Can you imagine if a company put millions of dollars together to launch .thing, promoted it for ten years, and then had ICANN reassign it to another registry? Not going to happen unless there are serious shenanigans going on at the registry.
New TLD applicants will believe they are creating a TLD all for themselves. As long as they pay the bills, it’s theirs to keep. Without this belief they wouldn’t bother applying. This may not be a bad thing; it’s just very different from the traditional view of a registry.
Second, in light of the goal of these new registry applicants, it will be anything goes. There are limited controls on pricing, but you’ll see a lot more activity similar to what .jobs is doing. Realizing there is little money in running .jobs the way it was intended, the registry is opening up and becoming a business partner.
“We have these generic and good domains. Tell us why you should be able to buy them from us.”
Revenue share deals between registries and applicants for good keyword domains? Registries taking equity positions in registrants’ ventures?
Whether or not this is right, this is the reality. It may not be that bad of a thing, as long is it doesn’t spill over into the existing TLD space. Sophisticated registrants of .com domains registered the domains with the understanding of how .com would be run. That can’t change. For new TLDs, however, everything is on the table.
gpmgroup says
I wonder if a registry twitter page highlighting auctions for famousTM.newgTLD will become a common occurrence?
Abe says
Even .com is on the table. Monopoly, contract renewals etc.
.com might be run by Afilias. You never know.
Vika says
Good analysis, Andrew. Expect even more changes to ccTLD registry roles as they realise that gTLDs are upping the stakes.
Wargy says
Vika,
This is already happening.
Eurid currently running promotions for .EU
To the end users they offering like a 100 iphones.
Registrar wise they offering several promotions 2 months free registrations . marketing budgets .
DNS BE used to follow the same route as Eurid promotion wise .
RedES the spanish registry cancelled their .ES promotion this year due to crisis.
NIC AT runs their 99 cent per domain promotion 2 months a year.
ccTLD’s Registries who are serious are on the ball.
Registries who launch a new TLD. They need to focus on end users. With .CO i got mixed feelings.. It was hyped up for domainers imo .
However it still can be a strong ccTLD in the future. With a good aftermarket.
.co.uk , .de proved that.
Andrew’s analysis is dead on imo.
But take a look at current gTLD’s .biz , mobi etc etc. Create awareness to the end user.. If that foundation is not there.. it will just be a niche for domainers and the rest of the world … they have no clue and are not aware.
Landon White says
Cant sell from an empty wagon!
Repackage, Repackage, Repackage …
Coke, Diet Coke, caffeine free, splenda, saccharin, Zero Carbs, vanilla coke,
cherry coke etc, Pepsi this, and …
Pepsi that –
AND all the other endless Brands, more!
But in the end, it all comes back to simply COCA COLA being the KING as always.
Just another way for the Big Guy to …
“PUMP UP” the Little Guy with Dreams of QUICK RICHES ” then to shake em down ”
before they realize they bought another worthless overrated NEW DOMAIN PROMISE …
🙂
Adrian Kinderis says
Great story but I’m not sure that is right.
Presumptive renewal is actually built into all new contracts. Provided you are not in breach of your contract… you get it again. Any new Registry should go forward knowing that perpetuity is a real option.
Secondly, I think you are trying to compare apples with apples when reality is that all new domain name registries wont just be the vanilla type we have seen up until now. Registries will be involved with content provision and features that will distinguish them from a standard “domain name sale”.
It is a new frontier with new and innovative players. I am not sure you can make the baseline comparison alone.
MS says
Why are internationalized versions of existing gtlds need to be delayed until the unknown time all the issues surrounding tld’s like .canon .music and .paris are resolved.
IDN gTLDs are a necessity to billions around the world, there are 16+ idn cctld’s in the root today, both cctld and gtld process was always meant and planned to be in parallel and now with those additional delays that are likely to happen, IDN gTLD fast track hopefully becomes a very real option.
KMD says
“Sophisticated registrants of .com domains registered the domains with the understanding of how .com would be run. That can’t change.”
Ummm…I disagree. If the new TLD’s get “special business circumstances” approved by ICANN, then you can be certain registries like Verisign and Afilias will be sure to apply for and win these same “special business circumstances.”
gpm group says
If the new TLD’s get “special business circumstances” approved by ICANN, then you can be certain registries like Verisign and Afilias will be sure to apply for and win these same “special business circumstances.”
I believe Neulevel / Neustar Registry have already indicated that they consider “.biz” a “small” registry and will apply to have any advantages allowed for new gTLDs granted to .biz.