.nl domain name growth slows down in 2012 and the registry blames domainers

Growth in the number of .nl domain names slowed considerably in 2012 and SIDN’s annual report says that this happened because there isn’t as much money to be made from domain name trading now. So was the lack of growth in .nl caused by domainers? I don’t think so. Why not blame domainers for everything….

Here are the top .nl sales in 2012 as featured in DNJournal:
 €21,002 = $27,513
Planten.nl €14,000 = $18,340

A net increase of 6.6% was recorded, compared with 14.5% the year before. The slowdown was therefore 48%, the biggest in ten years. Although the number of new registrations was broadly unchanged at 1.1 million, far more domain names were cancelled in 2012 than in previous years.

Economic climate
For a long time, the growth of the .nl domain had appeared immune to the difficulties affecting the Dutch economy. Last year, however, that situation changed. SIDN’s CEO, Roelof Meijer, explained the slowergrowth by saying, “Companies are looking more carefully at their expenditure, and there isn’t as much money to be made from domain name trading now. So we saw a lot more cancellations in 2012. Other country-code domains also experienced weak growth in 2012. Germany’s .de domain grew by 77% less than in 2011, and the United Kingdom’s .uk by 54% less. Despite the slower growth, .nl’s share of the Dutch domain name market increased in 2012, to stand at 72.9% by the end of the year.”

Successful roll-out of DNSSEC
Where adoption of the DNSSEC security protocol was concerned, 2012 was a very successful year for SIDN. DNSSEC is an extension to the DNS, which enables internet users to verify that a response to a DNS query is authentic and comes from the correct party. “SIDN is investing in the acceptance, use and further development of DNSSEC,” commented Meijer. “In 2012, we saw clear evidence that that policy is working. By December, SIDN was administering more than 1.3 million DNSSEC-secured domain names, making us the world leader in this field. When it comes to the roll-out of DNSSEC, the .nl domain is universally held up as an example of best practice.”

Looking ahead
In 2013, SIDN will be focusing on new products and services. “In 2012, we saw the first signs that the .nldomain may not go on expanding indefinitely,” Meijer continued. “That’s why SIDN’s strategy has two elements: assuring the continuity of the organisation and increasing the added value for the (local) internet community. Through our successful administration of the .nl domain, we have developed extensive and unique expertise, which we seek to use for the benefit of the internet in the Netherlands and the wider world, now and in the future. So, for example, we are continuing to develop our SIDN Labs research programme and investing in new technology, products and services. Our close involvement with the .amsterdam domain and the Abuse Information Exchange are good examples of what we are looking to do.”


About Konstantinos Zournas

I studied Computer Engineering and Computer Science in London, UK and I am now living in Athens, Greece. I went online in 1995, started coding in 1996 and began buying domain names and creating websites in 2000. I started the OnlineDomain.com blog in 2012.

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