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ICANN predicts flat domain name industry by 2025
Industry Information
18 Dec 2023 05:32:35 PM
Abstract:
According to the latest budget forecast from the International Corporation for Assigned Names and Numbers (ICANN), sales in the gTLD (generic top-level domain) industry are expected to remain relatively stable next year.
According to the Internet Corporation for Assigned Names and Numbers (ICANN), based on the latest budget forecast, the revenue of the gTLD (generic top-level domain) industry is expected to remain relatively stable next year.
Statisticians estimate that the organization will earn $89 million from traditional gTLD transactions (primarily .com) in the 2025 fiscal year, slightly higher than the $88.9 million projected to be earned by the end of the 2024 fiscal year on June 30.
Simultaneously, it is anticipated that transactions involving new gTLDs will generate revenue of $1.01 million, surpassing the expected $0.99 million for the 2024 fiscal year.
The updated budget for the 2024 fiscal year is slightly higher than ICANN's current budget (formulated in April and approved in May). The old budget projected $87.1 million, while the new budget is $92 million.
ICANN expects to lose 22 registrars (potentially unused registrars, with many contracts still needing renewal in 2025) and add 40 new registrars. This will result in a decrease in fixed fees revenue from registrars, from the projected $28.1 million to $27.6 million, and an increase in fixed fees from registrars, from the projected $10.1 million to $10.4 million.
The number of registrars for the 2024 fiscal year is healthier than ICANN's April forecast, with an expected 2,575 accredited registrars by the end of this fiscal year compared to the earlier projection of 2,447. Gname's decision to purchase 150 new accreditations will play a significant role in this increase. ICANN anticipates having 2,615 registrars by the end of the 2025 fiscal year.
However, the pace at which ICANN is losing registrars is faster than predicted in April. At that time, the forecast was for 1,127 registrars by the end of the 2024 fiscal year; now it is expected to be 1,118. The projection for the end of June 2025 is a further decrease to 1,089.
Overall, ICANN's budget stands at $148 million, and the expenditure level for the 2025 fiscal year is the same as in 2024.
Source: DOMAIN INCITE
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