In an article published by itbusiness.ca, the CEO of the Canadian Internet Registration Authority (CIRA), Byron Holland said that 50 percent of all new gTLD’s will go out of business in 2-3 years.

“It’s going to dramatically impact the Canadian domain space one way or the other”

“We assume if you add 500 or 1,000 new TLDs to the Internet landscape, we will definitely be up against a more competitive environment.”

“Just like any other private business starting up, all these new TLDs will have a 50 per cent chance of going out of business in two or three years,” Holland says. “That’s going to be somewhat disquieting to people.”

The one fact that the CEO of CIRA didn’t chat about or even recognize is that as part of the process all new gTLD operators have to have 3 years of operating expenses in the bank in escrow or have a letter of credit for that amount issued to ICANN

Personally I have no doubt that there will be new gTLD’s that will fail.

I think 50% is a extremely high percentage especially since there will be a lot of .Brands which are not applying as a for profit registry and many Geographic areas where the change for failure is pretty low.

Still an interesting read

Source from http://www.thedomains.com/

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