nTLDs 4 and half years later…

Top Level Domains (TLDs):

  • nTLDs =  new TLDs, like .blog
  • gTLDs = all generic TLDs, including nTLDs
  • ccTLDs = country code TLDs, like .uk

May 21st marked one and half years since .blog launched in general availability to all registrants. Here is an update of where the domain industry is at since the launch of nTLDs in January 2014,  four and half years ago.

Since then more than 1200 nTLDs have been delegated, of which 600+, like .blog, are ‘open’ and therefore available to the public. It is worth noting that between 1984 and 2013 only 22 gTLDs existed, with .com representing over half of all domain names registered combined (gTLDs and ccTLDs).

Quick Stats:

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There are many factors which affect the domain market but nTLDs appear to be influencing it as .com and ccTLD growth has slowed down in the past 4 years, while the group `Other gTLDs` has decreased by 4.4%.  With 23.7 mil domains, nTLDs represent 6.2% of the market.

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From its height in 2016, nTLD domain name registrations have decreased by approximately 5 million domain name registrations or 19.5%. This is mainly due to declines (lack of renewals) in many new TLDs like .top, .win, .xyz, .loan, .vip and others that have focussed on near zero cost promotions as well as the unpredictable Chinese domain investor market.

(Note: China quickly entered the nTLD game as a high volume/ low-cost market with little to low usage. Their unprecedented domain growth was due to investors using the domain market to make up for shortfalls in other traditional investment sectors. Chinese investors prefer numerics (number domains), pinyins, consonants (without vowels or v) and any domain name that is relatively short.)

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As you can see below, 8 of the top 20 nTLD registrars by volume are Chinese owned – Alibaba, Chengdu West, West263, Alibaba (Singapore), eName, Xin Net, Knet, and EIMS.

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ccTLDs:According to Verisign, ccTLD domain name registrations were approximately 146.1 million at the end 2017. This was with an increase of 1.4 million domains compared to the third quarter of 2017. ccTLDs increased by approximately 3.4 million domain name registrations year-over-year.

Top 10 ccTLDs (as of Dec. 31st, 2017)

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.blog:

.blog currently has 169,010 domains under management, with a 61.55% usage rate and a 65% renewal rate. It is growing at approximately 300+ new registrations/day and has been registered in 158 countries.

Here is a breakdown of .blog domains under management per registrar. As you can see, Automattic is overwhelmingly KKWT’s top registrar, followed by Tucows and GoDaddy.

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TLD Health:Not all nTLDs are created equal. Aside from growth, there are 4 other main indicators for TLD health.

1. Usage rates: When a domain is used for a unique content site, both as a primary domain and redirected. Parked and inactive sites are excluded.

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2. Renewal rates: Most nTLDs have a sub 50% renewal rate. .blog is currently at 65%. Unfortunately, I was unable to come up with reliable and comprehensive renewal rates for other nTLDs.

3. Spam and abuse: Malware, spam or are phishing sites. Less is obviously better. 4 of the top 15 nTLDs have the highest levels of spam and abuse. To date, .blog has 1 reported case of abuse.

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4. Life Time of a domain: How long a domain remains registered. LT is difficult to calculate for nTLDs since they are relatively new to the market and the information is not always made publicly available.Sources:

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