Analysis of New gTLDs

2000 INTERNET EXPLOSION: ANALYSIS OF THE NEW EXTENSIONS 1500 1000 500 1985 1990 1995 2000 2005 2010 2015* Hundreds of new generic top-level domains A process to liberalize the top-level of the Internet e.g. dot-com was started in 2005, following two very small expansions in 2000 and 2004. The process was approved in June 2011. In January 2012 applications opened and the results were announced 13 June 2012. *2015 estimate based on an assumption that al applied-for extansions will be approved. APPLICANTS VS APPLICATIONS 1930 1409 1155 Applications Extensions Applicants TYPES OF APPLICATIONS 4% 53% Brands | 34% amazon.com Google FedEx IBM BBC Ferrari (intel HEINZ CEGO 34% TM IDN • Generic | 53% • Brand| 34% • IDN|696 • Community | 496 Geographie Names not associated with a company country and not applying for special "community provision. From "scademy"to"yoga'and everything in between. Mostly US corporates 6nopp w European Names represented in different saipts from around the workd. Most Category for those that selfidentify with a group eg. gay"radio. Get priority over other applications for the same name. Also in the list: Smallest group with just 66 applic since most require government approvl. Mostly cities eg. Sydney, London, Abu Dhabi, Paris But also "afhrica,"arab" robably companies too. Most intend to use ectension applicationscame from China Covered for exclusive use. See large bubble above for most wel known everything from brands to city namesto religion "bark, nsurance. 9TLDS AROUND THE GLOBE 91 • 1-10 • 51-100 • 11-50 100+ Australia British Virgin Islands Cayman lands China Masico Uritad States Naw Zaland Norway Paraguay Portugal Qatar Russia Brazi Canada Bahrain Balgium rmute Colombia China France Hong Kong Gemany Gbraltar India Cyprus Czach Iroland Japan Lucombourg Italy Nocherlands Rapublic Darmark Egypt Finland Saudi Arabia Singapora Taiwan South Africa Spain Sweden Uhitad Arab Emiratas Thaland Korga Kuwait Liechterstain Uruguay Malaysia Turkay Ukraine Uhited Kingdom Vatican PROCEEDS $13.5m $12.4m TOTAL PROCEEDS $357m Where the money will go O Development costs $13.5m 4% O Processing costs (fixed) $12.4m 3% O Processing costs (varlable) $140.9m 39% $160.2m O Risk costs $30m 8% $140.9m O Excess $160.2m 45% $30m Total proceeds: Development costs: Processing costs: Risk costs: A total of 1930 Fixed figure of $13.475m to cover applikations received, each with an application fee of $185,000. A fixed figure of $12.4m plus a variable cost of $73,000 per application. A fixed figure of $30m to cover unanticipated costs such as variations "historical costs"of creating the program. between estimates and actual costs incurred "Figures takan from: Update to the Cost Considerations of the Now GTLD Program, 2October 2009. http://archive.kann.org/an/topks/now-gtlds/cost-considerations-04oct09-en.pdf BACK-END SUPPLIERS Outsourcing the technical functions Running an Internet registry is complex and expensive. Over 95 percent of applicants have therefore outsourced the job to experienced companies. The largest five of these 20 or so specialists account for just under 75 percent of applicants. 400 •358 350 333 300 0305 250 236 200 161 150 100 101 95 60 58 50 •23 16 27 ISC CORE KNET DMEL ARUAS VERISIGN CENTRALNIC KSREGISTRY ARI REGISTRY SERVICES TOP TEN APPLICANTS Donuts 307 Google 101 Amazon 76 Top Level Domaln Holdings 68 Domain Venture Partners 59 Uniregistry 54 Afillas 31 United TLD L'Oreal 14 Richemont 14 IDNS AROUND THE GLOBE Internationalized Domain Names (IDNS) It is now possible to create top-level domains in any script e.g. Arabic or Chinese characters, so an entire Internet address can appear in people's native languages. Since IDNS are dealt with slightly differently at a technical level, they have their own separate category. 17 • 1-5 • 6-10 11-15 15+ reland British Vingin Unitad States China Саутan klands Islands Lucembourg Hong Kong Switzerland Turkay Japan Vatican City Bahrain Uhited Arab Australia Emirates Russia Natherlands Kuwait Germany Ostar France CONFLICTS 39 3% 5% 751 IN CONFLICT 31% 1930 89 APPLICATIONS 5% 15% 20% CONFLICTS WERE 39% OF ALL APPLICATIONS. O 13 O 11 O 10 09 08 07 06 05 O 4 03 O2 13 CHAT 2 ENERGY APP DOG PET ECO APART MENTS 2 EXPERT PHD NC 11 FASHION FILM AUCTION EXPRESS PHONE ART 10 FLOWERS FOOD PHOTOGRAPHY 2 BLOG GAY FORUM 2 FISHING 2 PING GOLF FUN 2 FIT PLACE LLC GREEN GARDEN FOOTBALL PLUS HEALTH HELP FORSALE REALTY DESIGN ммо HOSTING 2 FURNITURE BAND FED MOVIE NSURANCE нот BANK 2 FYI FENT MUSIC LIFE BAR GDN FEVEW CLOUD MED LIVE BASEBALL RUN PIZZA MAP 3 BINGO 2 GIFTS SARL LOVE PLAY MARKETING BOATS 2 GLOBA SAS LTD POKER MBA BO GOLD SAVE MAIL RADIO MEDIA BROKER GO0 SCIENCE FEALESTATE MEMORIAL 3. CAFE GRATIS SECURE STORE RESTAURANT 4 MERCH CHANTY 2 GROCERY SEX WEB SALON MLS CHURCH GUARDIAN SHOPPING SCHOOL SEARCH BABY MOBILE CLICK GUDE SKI SPORT 3 COACH 3 COLLEGE COFP Мом HAIR CPA SHOW PROPERTY HOCKEY SRL GMBH SOCCER RACING CONSTRUCTION 2 EWELRY STORAGE TEAM AP COUNTRY JUEGOS STREAM 3 COUPON MDS 2 NOW STUDIO ONUNE VDEO SECURITY 2 UTINO SWISS TECH BASKETBALL 3 SPA CRUISE LAWYER VP BEAUTY SPOT DOS LEGAL THEATER BUY BRO ADWAY DEAI LVNG TRADING FREE 5 CAM TAXI 3 DELIVERY LOANS VOTE CARS 3 TIRES GAME DES WEBS GROUF CASA TUBE DEV LUXURY WEIBO SALE СпY WEBSITE DIRECT MONEY WORLD 3 DISCOUNT 2 MONSTER 2 MOTO SITE CLUB 3. WEDDING YOU STYLE CRICKET WNE DIY YUN TICKETS DATA DOCS ONE AUTO DEALS YOGA DOT OS AKA BET DNET 2 DRVE PARTY CASINO DOCTOR 2 EARTH 2 PAY EDITORS PICKS KETCHUP INC SEARCH Why plck this? Because it pushes the boundaries of Why plck this? Because it is one of the mosthighly contes ted applications and highlights Why pick this? Because it is at the heart of a brewing row over control of generic names commonsense a trend. Who applied for it? Heinz Who applied for it? Google, Amazon and two others. applied for it? Bleven companies in total. What will It be used for? To search for information online- What will it be used for? Dot-ketchup will bea "trusted, hierarchical, and intuitive namespace for consumers to access content related to Heinz Tomato Ketchup worldwide What will it be used for? For incorporated companies to register their name in a dearly defined space has made G companies in the world. sometnincoola Such need that it one of the biggest online. So what? Dot-search is a good example of what has most upset people about the new 9TLD results: companies looking to control a generic namespace. Both Amazon Sowhat? So what? We can see many wonderful and innovative uses for new top-level domains but, forgive us, we really think that a single ketchup.com would probably do on the topic of ketchup. Do you really need a fundamental piece of Internet infrastructure to cover the vagaries of tomato sauce? (No, you don't.) Not only was dot-incthe second most- contes ted name among applications, but a top-level domain to denote a type of business was the single most popular category of application. A: well as 11 applications for dot-inc, there are: nine for dot-LLC; seven for dot-Ltd; six for dot-corp; six for dot-GmbH; four for dot-LLP; threefor dot-Sarl; two for fot-SRL; and two for s and Google have said they intend to keep all dot-search names to themselves if they getit. That worries many in the Internet community who feel that generic names should be open to everyone. dot-SAS. What does it tell us about new 9TLDS? That some companies felt compelled to protect their leading brands, even when it made little sense to do so. This should be a prime candidate for Heinz to drop now that they know no one applied for it, and recoup $130,000 What does it tell us about new 9TLDS? It tells us more about the process What does it tell us about new 9TLDS? Dot-inc is a dear example of the pent-up demand that there was for new Internet extensions. People-and companies in particular - need an unduttered space online. The extension is also dearly defined by its name alone -anew trend with new GTLDS. used to arive at the rules for new 9ILDS. Despite years of debate, it doesn't appear to have occurred to anyone that a company may apply for a generic name and then seek to control it rather than make domain Anything else? Did you know that Heinz Tomato Ketchup was first sold in 1876 and names freely unavailable underneath it. It ako raises the possibility of a "walled Internet" Anything else? There are over 29 million registered now sells 650 million bottles as well businesses in the United States alone. With many companies having a separate, often unwieldy, domain name for their corporate arm, and with databases of companies kept meticulously by govemments and provided at little or no cost, this is clearly a very profitable concept if whoever wirs (it will almost certainly go to an auction) gets it right. Anything else? Among the other generic names that people are concerned will be controlled by large companies for their exclusive use are dot-app, dot- book, dot-game, dot-mail, dot-news and dot-shop. as 13 billion single-serve packets a year! However, it was the Chinese that started it back in the 1690s when they mixed pickled fish and spices and called the result "ke-chiap". SWISS VOLKSWAGEN WTF Why plck this? Because it pitches a government against a company and tests the rules. Why pick this? Because it just about the only application that could be viewed as objectionable. Why pick this? Because it shows the value of new 9TLDS and highlights a trend. Who appled for it? Who applied for it? Volkswagen. Who applied for it? Hidden Way aka Donuts Swiss Airlines and the Swiss government. What will it be used for? What will it be used for? In the first case for Swiss airline exclusive use; in the second what appears to be a country top-level domain similar to Switerland's dot-ch Unusually for a brand application, the dot-volkswagen domain will be open to all comers, most likely in an effort to tap the zeal many Volkswagen drivers have for the company's cars. What will it be used for? To provide'new avenues for expression on the Internet" particularly among thosethat are interested in demonstrations of irony, skepticism, humor, and aritique. TLD. So what? A huge number (34 percent) of applications werefor company brands, most of them intended for the company's exdusive use. Volkswagen's application also highlights that the auto industry in particular has seen the value of having its own Internet extension: others car brands thathave applied indude Audi, Bentley, BMW, Bugatti, Buick, Cadillaç, Ferrari, Hyundai, Jaguar, Lamborghini, Honda, Kia, Lexus, Toyota and Volvo. So what? The balance between commercial interests, government concerns and the open, community nature of the Internet are all featured in this So what? After hundreds of hours of discussions, and numerous rules and processes to ensure that there were no applications that caused "public morality" issues - the example of dot-nazi was frequently used -"it would appear that the whole issue was largely moot Of the 1,930 applications only four look remotely troublesome: dot-wtf is one. applications. Swiss Airlines has a clear trademark interest; on the other hand, the Swiss govemment has gone for a community application which means it could get priority. But will its claim to be a community hold up? Interesting that the Swiss government did not apply for it as a geographic The other three are"sex", "adult" and "porn" - n all put tin by the current owner of "xxx. The applicant for dot-wtf avoids any mention of what it stands for. name. What do es it tell us about new What does it tell us about new 9TLDS? That they have real value as a branding and marketing tool. Car companies in particular have seen the sense in having their own TLD because they operate so extensively through dealerships. Pulling a dealership under your name brand and perhaps even giving every dealership aconsistentlook-and-feel in their online presence is a huge branding advantage. 9TLDS? That the rules will be tested and there will be significant and legitimate interests on both sides (or multiple sides) in many conflicts. There will also besome politics - no one wants to tell a government they don't have a right to a name frequently used to denote its country. What do es it tell us about new 9TLDS? That there is room for new ways to seeing and using Internet extensions to reflect what people want to do online. In the same park as dot-wtf is dot-sucks (which has three applicants), but there are also many other examples of top-level domains that have a much more emotive or reative bent to them. There are two applicants for dot-lol. Other similar applications Anything else? Due to the diffiaulty in getting a sufficient high score in the tes ting criteria, there were only 84 community applications, despite the priority given over other types of evaluation will be aitical (for example, there is one dot-eco community bid but three others that want the extension). Some companies took an unnecessary risk by putting in a community application - Lamborghini and Audi would have got their names regardless Anything else? If you were ever in any doubt about the value of creating new domains, you need only look at the domain name that are in for dot-rocks and dot-feedback. Anything else? The application notes that "WTF is a pop-culture term"but that it is also an acronym for various other terms and references, and could be broadly applied in several languages. As far as we can see, the only other well known use of WTF is for the World Taekwondo applications. The Volkswagen listed for its application: Federation. There is no mention of taekwondo in the application. WHAT'S .NXT? .NXT IS THE FOREMOST PROVIDER OF INFORMATION ON INTERNET POLICY AND GOVERNANCE 29: UPCOMING CONFERENCE ABOUT .NXT MEMBERSHIP We offer a range of options for access to our full content, the most common being annual individual membership. We also offer monthly renewable memberships, a one- week pass, and discounts for multiple individual memberships. 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