New Top Level Domain Industry First Half 2016 Analysis & Insights (Infographic)

By Christa Taylor
Christa Taylor

This post provides an overview from The First Half of 2016 infographic, reflecting on some of the intriguing highlights of the new gTLD industry.

The data analyzed within the infographic is based on the following:

– Revenues are based on the average retail price over four registrars (101domain, eNom, GoDaddy and United Domains) at the end of June 2016.

– Top three TLDs launched in 2016 are based on TLDs entering into General Availability after January 1st and based on volumes and not revenues

– For greater insight, the TLDs have been separated into four quartiles or 'tiers' with tier 1 being the top 25% and tier 4 being the bottom 25%

– The top ten based on projected yearly revenues based on daily registration volumes

– New Top Level Domains (TLDs) contained in the data set reflect open TLDs and exclude single registrants such as brands

– Initial registration upswings have been eliminated with TLDs in the data set to be in General Availability for at least 60 days

– Free or significantly low registration pricing must have had a renewal period otherwise, it has been excluded from the analysis as sufficient renewal data to form meaningful outcomes is not yet available

– Registry revenues do not include premium name sales as dependable revenues are not available

– Operational losses are based on TLD revenues with a conservative $150k in expenses

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2016 Half Year New gTLD Review (Click to Enlarge)

Top Level Domain Statistics and Business Implications First Half 2016 Overview

Insights from gTLD Statistics and Business Implications First Half 2016

Tier 1: Trailblazers – A strong pack of leading TLDs who continue to grow the gap over the other three tiers

Tier 2: Path Finders – Finding their way

Tier 3: Campers – Niche groups of TLDs

Tier 4: Hikers – Determining a pathway up!

gTLD Business Implications for first half of 2016 and the road ahead

Please do not hesitate to contact us for any questions, insight or items to consider for future analysis.

By Christa Taylor, Christa Taylor is the CEO of DotTBA. Visit the blog maintained by Christa Taylor here.

Related topics: Domain Names, New TLDs

Comments

Revenue Analysis Appears Deeply Flawed George Kirikos  –  Jul 12, 2016 5:22 AM PST

The infographic suggests that .loan had the highest revenue in the period, but I'm not sure that's correct. If you look at nTLDstats for that registry, the top 5 registrars are from China, and it's highly likely those domains were sold at very low prices.

Instead, you used the "average retail price over four registrars (101domain, eNom, GoDaddy and United Domains) at the end of June 2016", which is going to be way off, given those registrars account for a tiny percentage of the domains that were actually sold by that registry. GoDaddy only sold 370 of the 248,656 registered domains in that TLD (at the time of this post).

George, thank you for your input. Christa Taylor  –  Jul 12, 2016 9:22 AM PST

George, thank you for your input. As you probably know, often there is minimal visibility on special promotions and rebates unless one is a Registrar, but your detailed observation is likely correct. Given limited transparency and access to all forms of data, the infographic is less than perfect but that is not its intent. The goal of this infographic, both prior and current forms, is to set a marker (the proverbial stick in the sand) and consistently and methodically measure from it only eliminating TLDs that produce out-of-band characteristics that will grossly skew results.

A message for all, I welcome as much data as people and companies are willing to send. I will gladly seek ways to integrate data to enhance accuracy. I will add at least one Chinese registrar on the next analysis to determine the impact on revenues along with a comparison to prior periods.

Lastly, I'd like to point out that much of the data presented here is based on forward projections and not just solely based on actual data. We are working with other partners on a plan to complement this projected data with actuals. Stay tuned and of course all feedback is welcomed and appreciated!

You're welcome, Christa. One source of data George Kirikos  –  Jul 12, 2016 9:59 AM PST

You're welcome, Christa. One source of data might be the public financial statements of Rightside and Minds+Machines. And, to a lesser degree, those of other public companies like CentralNic, Neustar, GoDaddy, Tucows, Web.com and Endurance (although, obviously not as good, since they're not pure new gTLD registries, but sometimes they'll break down some revenues, allowing one to glean bits of knowledge, sometimes from the footnotes).

Until Donuts goes public, the industry data will likely remain very poor, so one would have to put in quite a bit of work to make decent inferences from whatever is actually available. Kudos for trying!

Thank you and an invitation Samantha Frida  –  Jul 12, 2016 10:27 AM PST

HI Christa,

Thank you for publishing this - its always nice to see different perspectives and analysis on the nTLD industry and everyone will have a comment or two about it. The fact you published this, is an opportunity to view another perspective on the current landscape of the nTLD space.

I would like to invite you to view the analysis done by Dataprovider.com on more than 900+ nTLD's analyzed with as much insights reported into each zone. We are currently providing nTLD Registries with access to the system to gain monthly reports on their TLD's to hopefully help impact renewals positively. It is very interesting to see how many of these Registries take interest.

It would also be interesting to see how many business have adopted the nTLD's as part of their business identity. Very soon, I believe we will have insights into that as we index Company names for websites analyzed from these nTLD zones.

In any case, feel free to message me at sam@dataprovider.com for that walk through.

Thank you again for this post.

Businesses That Are Adopting ... Max Menius  –  Jul 12, 2016 6:51 PM PST

@Samantha - "It would also be interesting to see how many business have adopted the nTLD's as part of their business identity."

Samantha, here a few tools that allow internet users to follow new TLD evolution/adoption. My favorite is the Google tld-specific listing of websites. Simply type the phrase below in the Google search field to see nTLD websites coming online:

site:.newTLD (and replace "newTLD" with .energy or .club or .condos or whichever ntld interests you)

Also, you might visit Registered.today to view which new TLD's are registered daily. This is quite eye-opening.

Buy In or Get Out Phil Buckingham  –  Jul 13, 2016 7:29 AM PST

Hi Christa,
I, for one, can appreciate the incredible amount work that has gone into this. Many thanks for publicly posting this - as we all try and figure out what is ACTUALLY happening in the gTLD marketplace and what to do next.
There a number of drivers and your detailed analysis here of the sales/ volume /price registration data is a key one & is revealing, reflecting our own findings. Especially Tier 4 : the vast majority ( and increasingly so ) do not have a viable business model, running , run out of cash , wont get to critical mass . We are increasingly being approached to find further investment or asked how much the TLD is worth ,if sold,and who is buying in. It is going to be a long hike uphill for most and some now regretting their decision @ 2012 . P

Registration volumes Jean Guillon  –  Jul 20, 2016 3:04 AM PST

Hello Christa and thank you for this post. We actually posted its link on gTLD.club and its Newsletter.

If this can be of interest to you, we track and list weekly new gTLD registration volumes according to sectors and businesses. Our reports are available here: http://www.jovenet.consulting/reports

Congratulations for this great post.

Hello Jean,I would have saved myself some Christa Taylor  –  Jul 20, 2016 10:55 AM PST

Hello Jean,

I would have saved myself some time if I used your singular vs. plural page and also like how you have grouped TLDs within the various classes. 

Thank-you for the comment and for sharing the post!

With more time... Jean Guillon  –  Jul 20, 2016 11:05 AM PST

...I would provide more reports.

The good thing is that numbers are written week by week so it is a good method to check which kind of TLD works and which does not.