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New gTLDs: A Step-by-Step Guide
Thu, 10/27/2011 - 16:28 — Samantha Demetriou — PermalinkToday, FairWinds Managing Partner Josh Bourne published a cover article for iMedia Connection. The article, titled “Your Step-by-Step Guide to Acquiring a gTLD” walks applicants through all the phases of applying for and acquiring a new gTLD – from the initial fact gathering and planning; to preparing the best application possible; to launching a new gTLD registry and making the most of the ongoing relationship with ICANN. Josh also breaks down what applicants need to be thinking about and what questions they need to be asking throughout the new gTLD launch process. This article is a must-read for anyone considering pursuing a new gTLD.
Putting a Price Tag on Domains
Fri, 08/19/2011 - 14:41 — Josh Bourne — PermalinkDuring a recent interview with City A.M., former Chair of the ICANN Board of Directors Peter Dengate Thrush, who joined Top Level Domain Holdings in July after retiring from the ICANN Board, stated that the current domain name market is worth about $12 billion.
It is unclear exactly what Dengate Thrush was measuring in this estimation: whether he was referring to the value of the marketplace of companies that provide services to domain name registrants (registries, registrars, SEO service providers, advertisers, etc.), or to the marketable value of all domain names. At present, there are hundreds of millions of domain names across both generic (gTLDs) and country-code top level domains (ccTLDs).
What’s curious, however, is that Dengate Thrush made this assertion in the context of discussing new generic top-level domains (gTLDs). He believes that the domain name market will expand by around $3 to $4 billion with the introduction of new gTLDs. ICANN has predicted that the new gTLD program will launch hundreds of new domain extensions – compare that to the 22 existing gTLDs and approximately 240 existing ccTLDs. When these figures are taken into consideration, Dengate Thrush is basically predicting that the value of the marketplace will increase by only 25 to 30 percent, while the real estate in the gTLD marketplace will increase from anywhere from 2,000 to 5,000 percent, according to some estimates. In that context, his estimations could be interpreted as a lack of confidence in the future value of new gTLDs, or, more likely, a lack of empirical data supporting his assertions.
The point I’m trying to make here is that I wouldn’t put too much stock in these assertions. It will be years before we can know with any certainty what kind of impact the new gTLD program will have on the domain name marketplace. One thing is certain, though: that impact is likely to be dramatic.
Off to London
Sun, 08/14/2011 - 15:33 — Josh Bourne — Permalink.jpg)
Today, I’m heading off to London for a whirlwind three-day business trip. I’ll be attending a total of 15 meetings while I’m here, and I’m very much looking forward to seeing clients as well as some other business friends. Throughout this summer, we’ve been finding that many people are keenly interested in how FairWinds is working with companies to deal with new gTLDs, and how CADNA is working to improve Internet governance and promote policies that benefit both companies and Internet users, as well as promote cybersecurity.
I’m also really eager to see one of my good friends from college, who also happened to be a member of my wedding party. He’s been living in London with his wife and two children while on assignment for Goldman Sachs. I’m very happy to have been invited to his daughter’s second birthday party today. His sister flew in from Dubai and his parents traveled up from Greece for the occasion.
The forecast is calling for sunshine and a gorgeous 70 degrees – something we haven’t seen for months in Washington – for the party today. This should be a fantastic transition to the next few days in London.
Network Solutions Joins Register.com after Acquisition by Web.com
Mon, 08/08/2011 - 09:19 — Josh Bourne — PermalinkAs reported by Forbes and other outlets, Web.com will be acquiring domain name registrar Network Solutions for $405 million in cash, plus 18 million shares of common stock, valued at around $155 million.
This acquisition should help Web.com, parent company of Register.com, compete with GoDaddy, which was acquired by a group of private equity firms led by KKR & Co. and Silver Lake Partners last year in a deal worth $2.25 billion. Network Solutions is majority-owned by General Atlantic, another private equity firm, and after the acquisition, General Atlantic and other Network Solutions shareholders will own 37 percent of Web.com.
Network Solutions will bring its two million retail customers, hundreds of thousands of wholesale customers and over six million domains to Web.com. Register.com and Network Solutions are two of the oldest and highest priced registrars in existence.
This development, along with Go Daddy's acquisition, could signal a trend of consolidation in the domain name industry in anticipation of the potential explosion of activity in the domain name space as a result of ICANN's June 20 approval of the New gTLD Program.
IGF-USA Observations
Wed, 07/20/2011 - 11:51 — Samantha Demetriou — Permalink
Yesterday I attended the Internet Governance Forum USA (IGF-USA), hosted at the Georgetown University Law Center here in Washington, DC. Specifically, I went to sit in on an afternoon workshop titled “Changing Landscape of the Domain Name System: New gTLDs and their Implications for Users: Opportunities and Risks.”
The IGF-USA is the U.S. branch of the broader IGF, a multi-stakeholder organization that was formed to support the United Nations Secretary-General in carrying out the mandate from the World Summit on the Information Society that it convene a forum for various parties to discuss policy. The IGF does not set policy, but provides discussion that can serve as fodder for policy makers, many of whom participate in IGF forums.
The IGF provides a summary of the Changing Landscape of the Domain Name System workshop, along with the list of panelists who led the discussion, here. In addition to those listed, Jamie Hedlund, ICANN’s Vice President, Government Affairs, also participated. As I mentioned before, the IGF cannot actually set policy, and in the case, the workshop dealt with a policy that is already in place. So at times, when audience members expressed trepidation or even disagreement with aspects of the new gTLD program, there was a sense that it was falling on deaf ears.
One audience member raised the question of whether the “rush” for new gTLDs could mirror the .COM bubble and its subsequent burst. Hedlund responded that whether new gTLDs survive is not the point, but that the point of the program is to increase competition. I then asked what will happen when a new, open-registry gTLD (like .MUSIC or .ECO) fails, as so many of the panelists had indicated will likely happen – some will inevitably fail. He answered by explaining that each new gTLD registry must demonstrate that it is financially stable enough to continue operations for three years in the event that it fails, during which time ICANN will find another party to take over the gTLD. However, the exchange ended there; Hedlund never broached the issue of what would happen when certain gTLD registries end up being a bad investment an no party wants to take them over. How long can gTLDs like .FOOD or .BOISE last if no one wants to run them?
I don’t doubt that the IGF has positively influenced policy since its establishment in 2006. However, in the case of new gTLDs, yesterday’s workshop seemed to only confirm what many have expected for some time: that ICANN followed its own agenda with the New gTLD Program, diverting only very briefly to listen to outside advice.
New gTLDs and Online Retailers
Fri, 07/15/2011 - 17:20 — Josh Bourne — Permalink
This week, I wrote an article for Forbes.com about what retail brands need to know about new gTLDs. All brands will have to adapt their digital strategies to the new gTLD space, but global retail brands will face particular challenges and opportunities.
For retail brands, perhaps more so than other industries, the branding implications of being “left behind” and seeming out of date if they do not adopt new gTLDs could be significant. If they stick to their .COM addresses, they could risk appearing “so 1999” as compared to their competitors who begin using branded gTLDs. Since ICANN will not publish the list of applications until after the application round closes, retail brands will have to take a gamble, and for many, the safe bet will be to assume that their competitors are, in fact, applying.
But on a brighter note, new gTLDs could offer interesting marketing opportunities for retail brands. Take back to school shopping as an example. Right now, most top-level domain equity lies in .COM, and there can only be one BackToSchool.com. In the new gTLD space, we could see addresses like BackToSchool.Target and BackToSchool.OldNavy, which could redirect to Target and Old Navy’s back to school sale pages.
On the subject of redirects, in most cases retail brands (and all brands) should not attempt to fully transition content to new gTLD domain names right away. They have made significant investments into optimizing their current sites to rank highly in search engine results, so until we know how search engine algorithms will account for new domains, brand owners should consider redirecting new domains to their existing .COM URLs.
New top-level domains will present online retailers with unique and unprecedented opportunities and challenges over the next few years. But the first and most crucial step that all brand owners must take between now and the opening of the application period is to gather facts and take the time to really explore whether or not applying for a new domain will be advantageous for their business.
The Game has Changed, and Now So Must the Game Plan
Wed, 06/22/2011 - 15:39 — Phil Lodico — PermalinkMonday was a long awaited day for many in the domain industry. While some of us have spent the past few years working hard to make the planned launch of new gTLDs as orderly and minimally harmful as possible, others pushed hard for less regulation and an earlier launch. At the end of the day, we have achieved about as much balance as possible from ICANN, an organization that is biased to begin with.
New gTLDs are coming. On January 12, 2012, the application window will open and ICANN will accept applications for new gTLDs for four months.
If the past two days are any indication of what the next six months will be like, I think we are all in for quite a ride. From early in the morning until well into the night these past two days, I have spent hour after hour discussing and responding to brand owners’ inquires about what to do now. I’m sure today will be no different, as the news cycle has likely pushed the topic of new gTLDs up to the higher echelons of most corporations.
While a select few companies have already announced their plans to apply for their own .BRAND gTLD, the realization that new gTLDs are now around the corner has brought the issue to the top of the minds of everyone that has been waiting on the sideline to see what would happen.
Now that there is no more uncertainty as to whether new gTLDs will be officially approved or not, it is time to begin planning. Like it or not, we will see many, many new gTLDs applied for and launched within the next year. Some will succeed and some will fail. Whether a company ultimately decides to apply for their own gTLD, this impending change will alter the way the Internet looks and how users move through it. All brands will have to adapt to the new landscape. Because of the potential ramifications of this change, the C-Suites of all major companies need to be aware of this issue.
The game is set to change and brand owners need to be ready. But that doesn’t mean they should rush into a decision as some companies are suggesting. Rather, right now they need to take the time to fully understand how new gTLDs will impact their digital strategy, as well as all the benefits and risks of both owning and not owning their own gTLD. The wait and see period is over. Now it’s time to formulate a plan.
If you need the facts and would like help navigating through the noise, drop us a line.
Latest, and Perhaps Final, Version of New gTLD Guidebook Drops
Thu, 06/02/2011 - 09:26 — Josh Bourne — PermalinkYesterday, ICANN released the latest version of the Applicant Guidebook for new gTLDs, the version it hopes to present to the Board of Directors for final approval on June 20. This version comes only six weeks after the last version, which attracted a total of 60 comment submissions, many of which expressed concern over trademark protection mechanisms.
Similarly, the Governmental Advisory Committee (GAC) continues to assert that there remain areas where it disagrees with ICANN. Namely, both the GAC and the International Trademark Association (INTA), have argued that ICANN should improve the Trademark Clearinghouse, the Uniform Rapid Suspension system and the Post-Delegation Dispute Resolution Procedure, all of which are designed to provide protections for trademark owners. The GAC and INTA, among others, do not believe these are sufficient. ICANN has not altered these portions of the Guidebook in this latest version.
For the most part, the changes between the last version and this version of the Guidebook have been minor.
For better or worse, there are strong indications that the ICANN Board will in fact approve this version of the Guidebook later this month. That means that over the coming weeks, by the end of July, brand owners should gather facts, seek external advice and prepare to make a decision on whether they will apply for a gTLD. They should consider how gTLDs will benefit them, including how they plan to use it and what advantages they hope to extract from it. But importantly, they should keep in mind that the policy is still not entirely finalized, and so they should not feel pressured to select technical partners like registry and registrar providers. By late August or September, they should begin actively searching for a partner to assist with the application process.
Putting the Horse Before the Cart
Fri, 04/29/2011 - 13:31 — Josh Bourne — Permalink
Since ICANN set an updated timeline for the new gTLD program at the close of the public meeting in San Francisco, many in the Internet community have been caught up in the fervor of preparing for the imminent introduction of potentially hundreds of new domain name extensions.
It’s time for a bit of perspective.
Regardless of how certain anyone is that the ICANN Board will approve the latest version of the Applicant Guidebook at the public meeting in Singapore in June, the fact remains that that there are still numerous hurdles to overcome before ICANN finalizes the policy around the new gTLD program. Changes could be made to the Guidebook that significantly alter how companies consider the option to own branded gTLD registries. One day, there will be a definitive policy, but at present, that policy does not yet exist.
That means that companies that are struggling to figure out a course of action for the day when new gTLDs become a reality can relax. Your backs are not up against the wall just yet. Right now, we can only venture an educated guess as to what the final new gTLD policy will look like; no one can know for certain what will eventually result from continuing deliberations within the ICANN community, the upcoming congressional hearing on ICANN and new gTLDs, or potential actions that the NTIA may take in regards to ICANN’s future with respect to the IANA contract.
Spending too much time wondering whether or not you will have to develop a business model around a new gTLD amounts to wasted energy at this point. Those questions cannot be assessed without knowing the final rules and policies around new gTLDs.
While it obviously does not hurt to be prepared for questions from top management, and to follow the developments of this program, it is futile to attempt to develop a plan or even to commit to partners until the policy is finalized.
And besides, since the main driver within the ICANN community behind rolling out new gTLDs has been future revenue generation, it’s a safe bet that ICANN will give potential applicants ample time to put together their strategies, seek budget signoff, partner up, and apply before the application round is well under way.
When a Company Need Not Apply for a gTLD
Wed, 04/20/2011 - 09:15 — Josh Bourne — Permalink
With ICANN’s publication of the latest draft of the Applicant Guidebook for new gTLDs (the April 2011 Discussion Draft) on Friday, conversation within the domain name space has turned to new gTLDs once again. Just last month, Japanese multinational Hitachi announced its plans to apply for a .HITACHI gTLD.
That got me thinking. Hitachi has a strong construction machinery business that produces various types of bright orange excavators. What other construction equipment manufacturers will choose to follow Hitachi’s lead and register their own branded gTLDs? Will we see a .CASE, a .DEERE or a .KOMATSU?
What we won’t see during the first, or any subsequent, round of applications will be .CAT for Caterpillar. Caterpillar, Inc. is known extensively as CAT – it even owns the domain name CAT.com and has trademark registrations for “CAT” dating back to the 1980s.
.CAT, however, was approved in 2005 as a sponsored TLD for the Catalan speaking community. Since then, only about 49,000 domains have been registered, according to its website.
So where does that leave CAT if its major competitors all end up with their own branded gTLDs? Certainly it could apply for .CATERPILLAR, but that extension is much more cumbersome and would undo decades of branding around the “CAT” name. I would be interested to know how CAT first reacted when it learned of the approval of the .CAT TLD, and what it thinks about its de facto exclusion from applying for its own branded gTLD.
Perhaps CAT will consider seeking some other action against ICANN. Then again, no domain ending in .CATERPILLAR can compare to its current domain, CAT.com. So perhaps it will continue to market that domain and save the cost of operating its own registry.
According to its latest timeline, ICANN predicts that the Board will consider and potentially approve the Guidebook at the end of June, meaning the first round of applications will likely not open for many months – perhaps not until late 2011, assuming things go smoothly for ICANN. One day, companies will face decisions like the one CAT faces. For the time being, no need to lose sleep; new gTLDs have not yet become a reality.
