The Rising Stakes in .TV Contract Square Off
While on Christmas break this week (if you can call it a break) , I’m catching up on my tech reading and stumbled upon a Washington Post article about the .TV contract set to renew in 2021.
The article — Tuvalu is a tiny island nation of 11,000 people. It’s cashing in thanks to Twitch. — is a good read about the rising stakes between Tuvalu and Verisign as the .TV contract due to the recent surge in streaming services over the last couple of years, with exponential growth slated in years to come.
If you’re like me, then you’re likely more familiar with .TV as a domain extension rather than the country Tuvalu — located halfway between Hawaii and Australia.
Average Internet users likely associate the .tv domain extension with video and streaming services, such as Twitch.tv and a growing number of like services.
However, while Tuvalu’s local residents don’t have the ability to access the internet’s full power, Tuvalu is set to cash in on the rising approximate 150 million people worldwide consuming live-streamed programming and competitive gaming in 2021, when the Tuvalu-Verisign contract expires.
Tuvalu currently earns 1/12 of its annual gross national income — roughly $5 million earned per year. The next contract renewal agreement could very well result in a major squaring off with Verisign to secure more money for the .tv domain licensing deal.
And should Verisign not feel compelled to renew at what Tuvalu deems to be a fair rate, then Tuvalu could place the contract out to bid to the likes of Neustar or Afilias.
For now, we’ll have to wait to see how things shape up this time next year.
I’m not sure the brief summary says it all, yes almost anything “could” happen.
Was there a sense the tension you describe as possible, is actually happening? or just a maybe..
It used to be papers reported news, now it seems they can simply report potential scenarios
It would be great for .TV to have a new operator. NOT as much for the registry business but to upgrade THE NON EXISTENT MARKETING
Hi Page – Whether the news or any other interest, the one thing we know is the contract will end in 2021. That’s certain! Knowing this, if .TV gets a better deal from Neustar or Affilias should create more than enough tension for Verisign to not want to lose the contract, especially with more and more streaming services only increasing for the foreseeable future.
Secondly, its highly possible, and I would say probably that the revenue to Tuvalu will go down. If it is $5,000,000 on 500,000 names that $10 per name per year.
In the past 20 years that has been subsidized by old high premium name renewals. Some .TV sites were paying $500 to 5000 to 50,000 per year. Many if not most of these sites have dropped their names, and although a one time premium was paid, theres not the ongoing amount s.
Its possible the .TV business model was tweaked for these high premiums to make the increased payment to Tuvalu.. but in 2011 there were no new tlds. .TV was one of the few commercialized cctlds.
As a large .tv domain name holder I want verisign to provide certainty and clarity about changes in the policies going forward. I’m sure we will see no price caps.
So if it is $5 million a year, id say Tuvalu has made out quite well… and is probably not anywhere near the perceived small nation being exploited thats easy to portray.
page
I think Tuvalu deserves more stake in this monetization…
I expect them to be very firm in their demand and get a major part of sales.
Verisign will be foolish to lose this tiny but very profitable investment…if they hesitate others jump quickly to grab it. it seems at least a little competition here for Verisign (not like .com price cap)
thanks for sharing the info Alwin.
actually i own Stakes/tv so the title made me more curious 🙂
Thanks,
Ravi.
Hi Ravi – Yes, Verisign would be crazy to let this gem of an extension go with the rising number of video streaming services with no decline in sight.