Domain Name Report Dec09
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Domain Name Report Dec09

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The VeriSign Domain Report

The VeriSign Domain Report
As the registry operator for .com and .net,VeriSign reviews the state of the domain name industry through a variety of statistical and analytical research.

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    Domain Name Report Dec09 Domain Name Report Dec09 Document Transcript

    • The Domain name inDusTry Brief VoLume 6 - issue 4 - DeCemBer 2009 The VerisiGn Domain reporT As the global registry operator for .com and .net, VeriSign reviews the state of the domain name industry through a variety of statistical and analytical research. As a leading provider of digital infrastructure for the Internet, VeriSign provides this briefing to highlight to industry analysts, media, and businesses important trends in domain name registration, including key performance indicators, and growth opportunities.
    • The Domain name inDusTry Brief - DeC 2009 eXeCuTiVe summary inDusTry GrowTh anD ComposiTion At the end of the third quarter of 2009, there was a base of Approximately ten million new domain names were registered more than 187 million domain name registrations across all across all of the TLDs in the third quarter of 2009. This of the Top Level Domain Names (TLDs). This represents two reflects an 15 percent increase in new registrations from the percent growth over the second quarter of 2009 and eight second quarter 2009. percent growth over the same quarter of last year. The base of Country Code Top Level Domain Names (ccTLDs) rose The composition of the domain name industry in terms of to 76.3 million domain names, an 11 percent increase year base size remained consistent with that of second quarter over year and a three percent increase quarter over quarter. In 2009, though there was some movement in the rankings. terms of total registrations, .com continues to have the highest The largest TLDs in terms of base size were .com, .de, .cn, base followed by .de (Germany), .cn (China), and .net.1 .net, .uk, .org, .info, .nl (Netherlands), .eu (European Union), and .biz. Total Domain Name Registrations ccTLD Breakdown 200,000,000 The third quarter of 2009 ended with 76.3 million ccTLD registrations across all of the ccTLDs. This represents an 11 180,000,000 percent increase over the same quarter of 2008 and a three 160,000,000 percent increase from the previous quarter. There are more than 240 ccTLD extensions globally, with the top 10 ccTLDs 140,000,000 comprising 64 percent of the total number of registrations. 120,000,000 Among the largest ccTLDs, there was notable growth quarter over quarter among several of the top 25 largest ccTLDs. 100,000,000 Registrations for Russian Federation (.ru) domain names grew 80,000,000 the fastest with a nine percent increase quarter over quarter. Polish (.pl) domain name registrations grew by eight percent, 60,000,000 the second fastest among the largest ccTLDs. The Brazilian ccTLD, .br, saw domain name registrations grow by seven 40,000,000 percent over the quarter. 20,000,000 In the third quarter of 2009, eight of the top 25 largest 0 ccTLDs experienced quarterly growth rates that were higher Q3 ‘08 Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 than in the second quarter and three, .br, .ru, and .pl, experienced more than 25 percent growth year over year. .Com .Net .Eu Other ccTLDs .Uk .Biz .Cn .Org Other TLDs .De .Info .Name Source: Zooknic, October 2009; VeriSign, October 2009 1 The gTLD and ccTLD data cited in this report are estimates as of the time of this report and subject to 2 change as more complete data is received
    • The Domain name inDusTry Brief - DeC 2009 ccTLD Breakdown .Com/.neT DynamiCs 80,000,000 VeriSign’s average daily Domain Name System (DNS) query 70,000,000 load during the third quarter increased to 53 billion per day 60,000,000 with peaks as high as 61 billion per day. This is a 10 percent increase from the 49 billion average queries per day in second 50,000,000 quarter 2009. Managing the increasing traffic on the Internet 40,000,000 reflects VeriSign’s continued investment in the DNS. VeriSign’s 30,000,000 continued commitment to its infrastructure has enabled them 20,000,000 to maintain a record of 100 percent Operational accuracy and 10,000,000 stability of .com and .net TLD resolution services over the 0 Top 10 Total ccTLD past 11 years, earning VeriSign the reputation of being one of the most reliable and trusted networks in the world. 2007 2008 Q3 ‘09 The overall base of .com and .net domain names grew to Source: Zooknic, October 2009 94.9 million domain names during the third quarter of 2009. New .com and .net registrations were added at an In terms of the total base of domain name registrations, .de, average of approximately 2.3 million per month in the third .cn, and .uk were the largest ccTLDs. Year over year, .de’s quarter of 2009 for a total of seven million new registrations growth rate was seven percent. Rounding out the top three in the quarter. ccTLDs were .cn, with a three percent increase year over year, and .uk, with 11 percent growth year over year. The renewal rate for the third quarter of 2009 was 70.5 Together, the bases of domain name registrations for these percent which represents slight change from the second three ccTLDs represented 50 percent of all ccTLD domain quarter of 2009 which was 70 percent. name registrations. .Com/.Net Registry Renewal Rates 80% 76% 76% 74% 74% 74% 73% 72% Top CCTLD reGisTries By Domain name 70% 71% 70% 71% Base, ThirD quarTer 2009 60% 1. .de (Germany) 6. .ru (Russian Federation) 40% 2. .cn (China) 7. .ar (Argentina) 20% 3. .uk (United Kingdom) 8. .br (Brazil) 4. .nl (Netherlands) 9. .it (Italy) 0% 5. .eu (European Union) 10. .us (United States) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 Source: Zooknic, October 2009 Source: VeriSign, October 2009 3
    • The Domain name inDusTry Brief - DeC 2009 Whether a domain name resolves to a Web site is a key factor Learn more in the renewal rates since domain names that resolve to Web To subscribe or to access the archives for the Domain Name sites are more likely to be renewed. VeriSign estimates that 88 Industry Briefs, please go to http://www.verisign.com/ percent of .com and .net domain names resolve to a Web site, domain-name-services/domain-information-center/industry- meaning that an end-user visiting that domain name would brief/index.html. Email your comments or questions to find a Web site. These Web sites can be further described as domainbrief@verisign.com. those having multiple pages or as one-page Web sites. One- page Web sites include under-construction, brochure-ware aBouT VerisiGn and parked pages in addition to online advertising revenue VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider generating parked pages. of Internet infrastructure services for the networked world. .Com/.Net Web Sites Billions of times each day, VeriSign helps companies and consumers all over the world engage in communications and One-page Web sites Multiple Page Web sites No Web sites commerce with confidence. Additional news and information 24% 65% 11% about the company is available at www.verisign.com. 0 10 20 30 40 50 60 70 80 90 100 Total Domain Names Analyzed = 94.8 Million Source: VeriSign, October 2009 Zooknic Methodology For gTLD data cited with Zooknic as a source, the analysis uses a comparison of domain name root zone file changes supplemented with WHOIS data on a statistical sample of domain names which lists the registrar responsible for a particular domain name and the location of the registrant. The data has a margin of error based on the sample size and market size. The ccTLD data is based on analysis of root zone files. For more information, see www.zooknic.com. ©2009 VeriSign, Inc. All rights reserved. VeriSign, the VeriSign logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign and its subsidiaries in the United States and in foreign countries. 12/09. Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause VeriSign’s actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as increasing competition and pricing pressure from competing services offered at prices below our prices, market acceptance of our existing services and the current global economic downturn, the inability of VeriSign to successfully develop and market new services, VeriSign’s ability to build out its infrastructure in pace with demand, the uncertainty of whether new services as provided by VeriSign will achieve market acceptance or result in any revenues and the uncertainty of the expense and duration of transition services and requests for indemnification relating to completed divestitures. More information about potential factors that could affect the Company’s business and financial results is included in VeriSign’s filings with the Securities and Exchange Commission, including in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this 4 press release.