Categorized | Brainstorming

Is Verisign’s Dot Web Purchase the Final Nail in the New gTLD Coffin?

Posted on 03 August 2016 by Andrei

Will .Web end up being the most successful new gTLD? Perhaps, perhaps not. It all depends on how we define “successful” I guess. I can tell you right now that if we choose to see things from a “which new G has the most registrations?” perspective, it definitely won’t be #1. Not by a long shot. If instead we see things from a “which new G made the most money?” angle (and I for one consider this approach a lot more reasonable) then perhaps Dot Web will indeed end up being the best.

Quite frankly, it doesn’t even matter.

What matters is that by acquiring Dot Web (the most talked about new gTLD by far), Verisign basically made everyone else look like amateurs. Realistically speaking, Verisign can definitely afford the $135 million .Web purchase, it’s definitely not something that’s going to break the bank.

And they may very well make those $135 million back in a realistic timeframe. Perhaps they’ll run .Web like they ran .TV before the March 2010 period (back when the best .TV domains had premium registration and renewal prices) with the intention of squeezing as much money out of it right from the beginning. Maybe they’ll make it more domainer-friendly. I don’t know.

Do I think .Web is going to end up being insanely profitable for Verisign?

No, I do not.

However, again, direct profits are not the only important variable.

In my opinion, the most important victory is represented by the fact that the new gTLD “trophy” (Dot Web) landed in Verisign’s portfolio.

They basically made their dominance abundantly clear without risking too much capital (for a company their size) and with realistic prospects of doing ok (even if not amazing) with the extension itself. I think acquiring .Web was a great decision. Even if Dot Web would end up losing money (highly unlikely) or barely breaking even, the purchase would still be sound because words can’t begin to describe how big of a blow Verisign gave to the new gTLD world by grabbing the most hyped and talked about new gTLD pretty much effortlessly.

Well played Verisign, well played!

5 Comments For This Post

  1. Jeff Schneider Says:

    Hello Andrei,

    We agree with you.
    Verasign already controls the .COM Profit Centers, an unbeatable Cash Cow. Expect to see .Web as a compliment to the .COM Profit Centers.

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master

  2. Patrick Hipskind Says:

    The whole purpose of the gTLD expansion was to expand choice in the Internet. By ICANN letting Verisign bid on and win .web, arguably the best gTLD, they allowed Verisign to solidify its position in the marketplace.

    I think a lot of dollars are going to be flowing to .Web and not the other gTLDs. By ICANN allowing Verisign to buy .Web they have really undermined the whole Internet expansion, and I do believe it will be the last nail in the coffin for some registries.

    I don’t see how ICANN can get away with a no lawsuit clause in its registry contract when it acts in bad faith like this.

  3. Jeff Says:

    The ntlds were stupid from their very introduction. If it weren’t for this .Web stuff they’d blame something else for their poor performance and overall failure.

  4. John Says:

    Makes you wonder why Google didn’t try harder, but I’m glad Verisign got it.

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