Price Increase for.ru/.рф. Irina Danelia for ccnso meeting at ICANN 61 San Juan, 14 March 2018
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1 Price Increase for.ru/.рф Irina Danelia for ccnso meeting at ICANN 61 San Juan, 14 March 2018
2 History Fee for 2 nd level domain name registration/renewal for registrars was stable since ,0 160,7 160,0 140,0 120,0 100,0 148,4 ~1,18 USD* ~ 2,02 USD* 120,0 According Rosstat official inflation rate from August 2007 till June 2017 was 128,21 % 80,0 60,0 from till USD from till ,64 USD from till ,72 USD 78,1 70,0 40,0 from till rubles 20,0 * at the exchange rate RUB/USD on July, , now
3 Market Landscape Russian TLDs (excl VAT, rubles).su 211,86.MOSCOW/.МОСКВА 220,3.РУС 375,00 gtlds (USD).COM 9.05.ORG 9.68.ОРГ 8,25.ОНЛАЙН 20.САЙТ 20
4 Market Landscape Average price for 2nd level domain name registartion/renewal for registrant in years, rubles registration renewal Source: registrars web-sites (publicly available data)
5 November 2014 exercise Proposal: increase from 70 rubles to 87,5 rubles (excl VAT) Ground: negative growth in Mar-Oct 2014 negative fcst for 2015 Proposal hasn t been approved by Council of Coordination Center for TLD.RU/.РФ Outcomes Cut in expenses, mostly advertising and funding of industry events
6 Price elasticity study Period: November-December scenario-based interview (12 registrars, 28 resellers, 100 registrants) It became evident during the interviews that respondents understand that price increase might happen sooner or later and that Coordination Center has the reason for such an increase, i.e. growing operation costs Scenario of price increase up to rubles is considered as most probable. Bigger registrars are ready for such an increase. Most negatively reacted the registrars dealing with domainers and dropcatchers. Price 150 rubles was considered sharp or many-fold Price increase up to 150 rubles or higher almost all respondents perceive negatively Most respondents predict 10-15% drop in renewals in case of price increase up to rubles, mostly due to the domainers segment. Price rubles may cause the increase of end-user price and drop in renewals in the private user segment.
7 Decision Fee for registration/renewal/transfer from 01 July 2017 The increase of the registration/renewal fee gives the Coordination Center the opportunity to fund the broad-scale projects focused, as defined in the statue, on development of domain names registration system, facilitating the security of the Internet usage, broadening the use of global network to the benefit of users, business and state.
8 Model for Forecast Domain names in.ru by registrant category % 2% 3% 6% 3% 8% 17% 56% Quantity of domains by category dec. 13 jun. 14 dec. 14 jun. 15 dec. 15 jun. 16 dec. 16 jun > 50000
9 Model for Forecast Forecast assuming no price change: new registrations & renewals by segment. Total growth in ,7% Adjustment by segment (vs no change forecast): New registrations -10% Renewals -5% % Total growth 2017 fcst: -1,7% 2017 EOP fcst:.ru 5,344,000 domains,.рф 868,000 domains Stress test: drop 20%
10 Market Reaction Feb 2017 silence End of March 2017 letter from registrars to Council and Board of Founders of Coordination Center for TLD.RU/.РФ Voting results: 120 rub is OK - 5 registrars (market share 45%) Price increase should be less - 6 registrars (market share 43%) No price increase - 28 registrars (market share 18%) Forecast: drop 11% in 2018 & 25% in 2019 Some domainers predicted that.ru will drop below 5 bln this winter May 2017 open public consultations End of June 2017: 9 registrars sent complain to Federal Antimonopoly Service. Still under investigation July,1 price increase came into force
11 Market Reaction Side effect: growth in new registrations & renewals in June 2017 Minimal increase of registrars price for end-user customers Main category of registrants (1-10 domains per registrant) continues to grow 2017 actuals better then forecast Side effect: strong discussion regarding transfer (change of registrar)
12 Stats (as of Feb, ) Jun 17 Sep 17 Dec 17 Jan 18 Total domains (.RU +.РФ) New registrations in.ru +.РФ (actual vs fcst) Renewals in.ru +.РФ (actual vs fcst) ,72% -12,46% -1,04% -2,32% 43,22% 3,01% 5,51% 3,67% New registration in.ru +.РФ Renewals in.ru +.РФ Jun' 17 Jul' 17 Aug' 17 Sep' 17 Oct' 17 Nov' 17 Dec' 17 Jan' Jun' 17 Jul' 17 Aug' 17 Sep' 17 Oct' 17 Nov' 17 Dec' 17 Jan' 18 FCST ACTUAL FCST ACTUAL
13 Thank you for your attention! Any questions?
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