Status Quo of the DE Domain and what are the new nTLDs

During CloudFest 2023, we had the opportunity to speak with Thomas Keller, a board member of DENIC eG, about the .de domain and discuss industry developments, especially regarding the new Top-Level Domains (nTLDs) that have changed the domain landscape in recent years. Thomas Keller has been a board member at DENIC since 2021.

Hello Tom, first of all, thank you very much for your time. Could you briefly explain to our readers the history of the German domain registration authority DENIC?

DENIC eG was established in 1996 as the central registration authority for domains under the Top Level Domain .de. Prior to that, since 1986, .de domains, the German country code on the internet, were managed by the universities of Dortmund and Karlsruhe.

In December 1996, a group of German Internet Service Providers decided to form a cooperative to ensure central administration of .de domains. Today, DENIC is one of the largest registries with over 17.5 million domain registrations.

Unlike other registration authorities, DENIC is a cooperative. Could you describe the advantages of this?

DENIC is a cooperative supported by its approximately 300 members. All members, regardless of size, have equal rights and decision-making power. This democratic structure is a key strength of our organizational form.
Furthermore, DENIC is not profit-oriented but aims to promote and develop the .de infrastructure in the interest of the internet community.
Another advantage is our self-regulation. DENIC is independent of government bodies and other interest groups. We operate based on the market expertise of our members and consensus-building on a broad basis.
Overall, the cooperative structure is a crucial success factor for .de domains.

How do you view the development of the .de domain in recent years?

We have seen growth from the outset, which has flattened out in recent years after the initial boom. The outbreak of the pandemic significantly accelerated general digitisation, which is also reflected in the development of .de. In 2020, the number of .de domains increased by around 2.3% compared to the previous year, and in 2021, it increased by 2.8%. The positive trend continued in 2022, albeit at a reduced rate of 1.5%.

An explanation for this development is certainly the broad digitisation. Many companies have realised in recent years that a strong online presence is crucial for business success. The .de domain is a fundamental resource. For example, due to the Corona pandemic and the associated lockdowns, many companies were forced to shift their activities online. This led to an increased demand for .de domains.

Image: Thomas Keller, Board Member of DENIC eG

I feel that the domain market has been somewhat flooded with possible extensions (nTLDs). How do you view the growth of nTLDs in recent years?

There are different views on this topic. The growth of nTLDs is very low compared to the growth of .de domains (in terms of registrations from Germany). Currently, we see around 25,000 new .de registrations per month. For nTLDs, there are only about 500 new registrations per month.

However, it is important to mention that nTLDs can be useful for specific purposes or target groups. For example, an nTLD like .hamburg may be useful when targeting a local clientele. Overall, the choice of domain extension depends on the individual needs and goals of the domain owner.

Would you recommend registering your own domain under various nTLDs (e.g. hosttest.online or hosttest.blog)?

This can make sense as users may sometimes forget domain extensions. A brand should therefore have a domain portfolio that reflects the value of the brand. In Germany, a .de domain is definitely essential as it is intuitively typed by most German users.

Do you see a threat to the .de domain from the new nTLDs, such as users opting for a more specific domain extension like .shop instead of the .de domain and deleting the .de domain?

nTLDs can be a useful addition to the domain portfolio. The .de domain is the most registered top-level domain in Germany with a market share of 69 percent. Many German companies rely on the .de domain to establish their online presence and increase brand awareness. I see nTLDs more as complementary to the .DE domain.

Final question: The emergence of a large number of new domain extensions should actually devalue an existing domain. How do you view this issue?

No, we do not see a decline in values; even in a changing domain landscape, a .de domain remains a decision of stable value.

Thank you very much for the interview and your time!

The interview was conducted by Marco Keul, founder and operator of hosttest.de

For more information on what DENIC does and the up-to-date .de domain statistics, visit https://www.denic.de/