Impact of a Federal Newspaper Bailout | DomainInvesting.com
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Impact of a Federal Newspaper Bailout

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Conor Neu brought up an interesting discussion about what could possibly happen to the geodomain industry should the federal government offer a bailout. I do my best not to follow political news these days because it’s distracting, but I do know that newspapers are very important to politicians. It’s the local newspapers who provide the most in depth local coverage, allowing an unknown politician to become known and relevant in his district. Newspaper journalists – especially local papers – are politically important, and I don’t think it would be a far stretch to see the government send some financial aid their way.

That said, I can’t ever imagine the US government taking geodomain businesses away from hard working entrepreneurs and giving them to the failing newspapers whose lack of foresight led them to where they are today. Nearly every major .com geodomain name is developed or under development, and almost all of those are either owned by private entrepreneurial companies (or newspapers), and I can’t fathom that the government would step in and take possession of one company’s assets and give them to another company – especially in a failing industry.

That said, I do think it’s possible that we will see newspaper companies receiving federal financial assistance, which could be used to buy geodomain names. One thing which newspapers should note is that geodomains generally have much, much less overhead than the newspaper, yet they receive just about the same (or more traffic) than the competing paper. I am a one man show, and in my local markets, I am most certainly competing online with the local papers’ websites.

I am very happy with my geodomain growth, and I think Conor’s article offers some good insight into the state of the industry and where it’s headed.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (2)

    Larry

    An indirect way they could do this is by the requirement to obtain govt approval to obtain a new geoTLD. If this rule gets applied to other (existing) registries, like lack of price caps may, that could make existing pure geos ‘legal non-conforming’ or subject to approval on transfer for instance.

    See the comments around para 2.7 at page 3:
    http://www.icann.org/correspondence/twomey-to-karklins-02oct08.pdf

    April 12th, 2009 at 12:04 pm

    Conor Neu

    Thanks Elliot,

    I agree that I can’t ever see the government taking geodomains. Truly, I do not think it will happen.

    However, I think we are at a point where the government actions are unprecedented. Any industry without deep-rooted political ties or history must be on their toes. The financial industry was not big enough or proven enough to hold off the government, and the auto industry is hanging on by a thread. Makes me wonder what could become of our small, young domaining industry. For better or for worse. We are in extraordinary times.

    Regards,

    Conor

    April 13th, 2009 at 7:37 pm

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