Three Years of Beyond the
Dot: A Retrospective of the
New gTLD Program
Nao Matsukata
President & CEO, FairWinds Partners
J...
AGENDA
• BACKGROUND
• ICANN’S DECISION TO LAUNCH
• EVALUATION & MEASUREMENT
• CONCLUSION
BACKGROUND
BACKGROUND
THE INTERNET LANDSCAPE
1985 2000 2001 2004 2005 2006 2007 2008 2009 2011
.ARPA .NAME .BIZ .PRO .CAT .MOBI .ASIA...
BACKGROUND
YESTERDAY & TODAY
A Comparison of the DNS Space since
ICANN’s First Public Meeting in Singapore
ICANN 1
1999
IC...
BACKGROUND
THE INTERNET THEN …
1985
1995
1998
BACKGROUND
… NOW
2011
2013
2014
ICANN’S DECISION TO LAUNCH
ICANN’S DECISION TO LAUNCH
THE MARKET
ICANN’S DECISION TO LAUNCH
THE MARKET
ICANN’S DECISION TO LAUNCH
THE MARKET
• In 1999, Network Solutions, Inc. (NSI) was the only
registrar for .COM, .NET, and ...
ICANN’S DECISION TO LAUNCH
SUPPLY
3-letter .COM domain
names ran out in 1997
(17,576 possible
combinations)
4-letter .COM ...
ICANN’S DECISION TO LAUNCH
DEMAND
$11M $2.45M $1M
$.5M
$.287M
Big ticket .COM domain sales
Hotels.com sold
for $11 million...
ICANN’S DECISION TO LAUNCH
TIMELINE
ICANN’s Generic Names Supporting Organization (GNSO) opens New gTLD Program policy
dis...
ICANN’S DECISION TO LAUNCH
GLOBAL GOVERNMENT REACTION
• GAC weighs in with Scorecard of 12 Issues
– Procedures for the rev...
ICANN’S DECISION TO LAUNCH
US GOVERNMENT REACTION
“I think we have to get used to dot-hotels, I think we have to get used ...
ICANN’S DECISION TO LAUNCH
IP/BRANDS REACTION
Brandowners
receive news
cautiously
Coalitions
develop to delay
launch (ANA)...
ICANN’S DECISION TO LAUNCH
DOMAIN INDUSTRY REACTION
Raised more than $60 million;
applied for 54 new gTLDs
Raised $33.6 mi...
EVALUATION & MEASUREMENT
EVALUATION & MEASUREMENT
PROGRAM GOAL
In ICANN’s words…
“New gTLDs have been in the forefront of ICANN’s agenda since its ...
EVALUATION & MEASUREMENT
DELAYS AND KEY CHANGES
DELAYS
Application period closes 48 days late
First new gTLDs are delegate...
EVALUATION & MEASUREMENT
PUBLIC AWARENESS
74% of
Internet users
do not know
about new gTLDs.
44% of Internet
users surveye...
EVALUATION & MEASUREMENT
MEDIA COVERAGE
“Why Brands Will Win from New gTLDs”
“.BRAND applicants won a significant concessi...
EVALUATION & MEASUREMENT
SIGNIFICANT OUTCOMES TO DATE
• Uniform Rapid Suspension System (URS)
• Trademark Clearing House/T...
ICANN’S DECISION TO LAUNCH
TOTAL NEW GTLD APPLICATIONS
Brand Terms
34%
Generic,
Geographic and
Other Terms
66%
Application...
ICANN’S DECISION TO LAUNCH
7 of the top 10 most innovative companies applied for a total of 194 new extensions, including
...
CONCLUSIONS
CONCLUSIONS
Questions to Consider
What will a
reformed
ICANN look
like?
What will the
role of
governments
be?
Will there b...
CONCLUSIONS
ICANN AND INTERNET GOVERNANCE
“We will support a free and open
Internet.”
- President Obama
Remarks to the UN ...
WANT TO LEARN MORE?
Visit www.beyondthedot.com
to learn more about new gTLDs
Follow the conversation and
ask questions on ...
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Three Years of Beyond the Dot: A Retrospective of the New gTLD Program

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Three Years of Beyond the Dot: A Retrospective of the New gTLD Program

  1. 1. Three Years of Beyond the Dot: A Retrospective of the New gTLD Program Nao Matsukata President & CEO, FairWinds Partners June 18, 2014 #beyondthedot
  2. 2. AGENDA • BACKGROUND • ICANN’S DECISION TO LAUNCH • EVALUATION & MEASUREMENT • CONCLUSION
  3. 3. BACKGROUND
  4. 4. BACKGROUND THE INTERNET LANDSCAPE 1985 2000 2001 2004 2005 2006 2007 2008 2009 2011 .ARPA .NAME .BIZ .PRO .CAT .MOBI .ASIA .AERO .POST .XXX .INT .COOP .JOBS .TEL .COM .INFO .TRAVEL .GOV .MUSEUM .ORG .EDU .MIL .NET
  5. 5. BACKGROUND YESTERDAY & TODAY A Comparison of the DNS Space since ICANN’s First Public Meeting in Singapore ICANN 1 1999 ICANN 50 2014 Number of Participants 100 2,200 Registered Number of Internet users 171 million 2 billion Number of domain names registered < 64 Million > 271 Million LexisNexis Newspaper search for “ICANN” in the past year 75 401
  6. 6. BACKGROUND THE INTERNET THEN … 1985 1995 1998
  7. 7. BACKGROUND … NOW 2011 2013 2014
  8. 8. ICANN’S DECISION TO LAUNCH
  9. 9. ICANN’S DECISION TO LAUNCH THE MARKET
  10. 10. ICANN’S DECISION TO LAUNCH THE MARKET
  11. 11. ICANN’S DECISION TO LAUNCH THE MARKET • In 1999, Network Solutions, Inc. (NSI) was the only registrar for .COM, .NET, and .ORG. • In 2000, Department of Commerce allows for an unlimited number of registrars. • By 2005, there were almost 300 operational registrars accredited by ICANN. • GoDaddy was bought by private equity in 2011 for a reported $2.25 billion. • Today, there are over 900 registrars, including Go Daddy, eNom, Tucows and Melbourne IT.
  12. 12. ICANN’S DECISION TO LAUNCH SUPPLY 3-letter .COM domain names ran out in 1997 (17,576 possible combinations) 4-letter .COM domain names ran out in 2013 (456,976 possible combinations) 5-letter .COM domain names have also decreased in availability (11,881,376 possible combinations) 3 4 5
  13. 13. ICANN’S DECISION TO LAUNCH DEMAND $11M $2.45M $1M $.5M $.287M Big ticket .COM domain sales Hotels.com sold for $11 million in 2001 Investing.com sold for $2.45 million in 2012 PersonalLoans.com sold for $1 million in 2012
  14. 14. ICANN’S DECISION TO LAUNCH TIMELINE ICANN’s Generic Names Supporting Organization (GNSO) opens New gTLD Program policy discussions GNSO completes policy development process ICANN Paris, ICANN Board approves the GNSO recommendations for introducing new gTLDs to the Internet’s addressing system First draft version of the Applicant Guidebook published Fifth draft version of Applicant Guidebook proposed with the assumption that it would be the final version ICANN approves the New gTLD Program at its 41st Public Meeting New gTLD application period opens, final version of the Applicant Guidebook published December 2005 September 2007 June 2008 October 2008 November 2010 June 2011 January 2012
  15. 15. ICANN’S DECISION TO LAUNCH GLOBAL GOVERNMENT REACTION • GAC weighs in with Scorecard of 12 Issues – Procedures for the review of sensitive strings (ICANN) – Market and economic impacts (global) – Use of geographic names (legal) • Who owns .AMAZON?
  16. 16. ICANN’S DECISION TO LAUNCH US GOVERNMENT REACTION “I think we have to get used to dot-hotels, I think we have to get used to dot-auto. I start from that position, but I listen. And I think a surge of new names and addresses can create opportunities. The potential for fraud, the potential for consumer confusion can lead to fraud without a knowing act, cybersquatting, all of these are massive… Senator Jay Rockefeller (D-WV) United States Congress Reacts Obama Administration Reacts
  17. 17. ICANN’S DECISION TO LAUNCH IP/BRANDS REACTION Brandowners receive news cautiously Coalitions develop to delay launch (ANA) 1,266 generic gTLD applications 664 brand gTLD applications
  18. 18. ICANN’S DECISION TO LAUNCH DOMAIN INDUSTRY REACTION Raised more than $60 million; applied for 54 new gTLDs Raised $33.6 million in Jan 2014; applied for 92 new gTLDs Raised more than $100 million in first financing round after creation in 2011; applied for 307 new gTLDs Uniregistry Minds + Machines Donuts
  19. 19. EVALUATION & MEASUREMENT
  20. 20. EVALUATION & MEASUREMENT PROGRAM GOAL In ICANN’s words… “New gTLDs have been in the forefront of ICANN’s agenda since its creation.” As part of its commitment to “promote competition, consumer trust, and consumer choice in the DNS marketplace,” ICANN introduced the New gTLD Program to “open up the top level of the Internet’s namespace to foster diversity, encourage competition, and enhance the utility of the DNS.” – ICANN, 2009 Affirmation of Commitments and Preamble to the New gTLD Applicant Guidebook
  21. 21. EVALUATION & MEASUREMENT DELAYS AND KEY CHANGES DELAYS Application period closes 48 days late First new gTLDs are delegated approximately 150 days late First ICANN auction takes place approximately 270 days late KEY CHANGES Name collision delays certain applications, limits available domains Closed generics must open up Registry Agreement: PIC requirements and Specification 13
  22. 22. EVALUATION & MEASUREMENT PUBLIC AWARENESS 74% of Internet users do not know about new gTLDs. 44% of Internet users surveyed indicated that new gTLDs either probably or definitely would cause confusion. 70% of Internet users say they will trust branded gTLDs. 74% 44% 70%
  23. 23. EVALUATION & MEASUREMENT MEDIA COVERAGE “Why Brands Will Win from New gTLDs” “.BRAND applicants won a significant concession [Spec 13] at the ICANN meeting in Singapore […] “once consumers begin to use and recognise branded domains […] brand owners could be the winders from the gTLD expansion.” “We’re all used to the traditional TLDs, such as .net, .com and .org, and the point of the initiative is to add a bunch of new gTLDs to create more options because the Internet is running out of good domain names to use. Now if I own a tattoo parlor, I can register company.tattoo. Or if I’m a tax advisor, I can register company.tax.”
  24. 24. EVALUATION & MEASUREMENT SIGNIFICANT OUTCOMES TO DATE • Uniform Rapid Suspension System (URS) • Trademark Clearing House/TM Claims Trademark protections have changed • .NINJA, .GURU, .NYC Increase in consumer choice and competition • Additional IDNs • ICANN Meeting Fellowships Greater global awareness
  25. 25. ICANN’S DECISION TO LAUNCH TOTAL NEW GTLD APPLICATIONS Brand Terms 34% Generic, Geographic and Other Terms 66% Applications Total Applications: 1,930 Applications for Brand Terms: 664 Applications for Generic, Geographic and Other Terms: 1,266
  26. 26. ICANN’S DECISION TO LAUNCH 7 of the top 10 most innovative companies applied for a total of 194 new extensions, including Apple’s .APPLE, Amazon’s .IMDB and Google’s .CHROME CBS Valued at $34.5 billion, employs over 21,000 people (.CBS, .SHOWTIME) AXA Valued at $43 billion, employs over 150,000 people (.AXA) Ford Valued at $67 billion, employs over 180,000 people (.FORD, .LINCOLN) AbbVie Valued at $86.6 billion, employs 21,000 people (.ABBVIE) Walmart Valued at $241.7 billion, employs 2.2 million people (.WALMART, .GEORGE, .ASDA, .SAMSCLUB, .GROCERY, .一号店 )
  27. 27. CONCLUSIONS
  28. 28. CONCLUSIONS Questions to Consider What will a reformed ICANN look like? What will the role of governments be? Will there be widespread adoption?
  29. 29. CONCLUSIONS ICANN AND INTERNET GOVERNANCE “We will support a free and open Internet.” - President Obama Remarks to the UN General Assembly September 23, 2010
  30. 30. WANT TO LEARN MORE? Visit www.beyondthedot.com to learn more about new gTLDs Follow the conversation and ask questions on Twitter using #beyondthedot

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