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I see that most domain names that contain some nice words like: www.pixelmania.com , www.musicbox.com and so on... are registered but look just auto-populated with some random data. Why they do this ? Is it for me to pay extra to get that domain? Is it for advertising purposes (all of them have insane amounts of ads on them)? Or what ... ?

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They hope to resell them, they are simple a pain in the neck to whoever wants to run a real business using one of those domain. If I was the TLD authority I would force people to use a domain by setting up a real website or someothing otherwise the domain is impounded!!! –  Marco Demaio Nov 15 '10 at 22:09
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4 Answers

up vote 3 down vote accepted

They're probably expired domains that were snapped up by companies that build huge networks of domains with the sole purpose of showing advertising. They make countless millions of dollars a year doing it.

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"Countless millions of dollars" out of it, are u sure? –  Marco Demaio Nov 15 '10 at 22:06
    
Yes. The biggest player in the biz sold the company for an insane amount of money. I tried to find it so I could link to it but wasn't able to locate it quickly. But it was big bucks. And there are lots of companies doing this. –  John Conde Nov 16 '10 at 1:13
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Its nothing. Just few bunch of selfish freaks, who are planning to make more money selling them in future.

But sometimes... they are also used to reserve the domain for future development to avoid the risk of losing them in future. And they try to utilize this unused to domain by advertising and earn a little money on the mean time. :D

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In addition to the other answers, they are sometimes registered to catch typos. For example if someone typed gogle.com instead of google.com (although Google owns that misspelling!).

pixelmania.com could be set up to catch visitors for pixmania.com

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There are several reasons

  1. for money - sell the name for more;

  2. prevent phishing;

  3. prevent other people (companies) steal some fame from your product (JavaScript for example);

  4. future expand of the original site (local site for every country);

  5. expired domains as John Conde sayd. I think the ads and the random data is available only in the "possible renew" period;

  6. there is a small number of domains that are registered for system use only (.arpa). Not Exactly sure about "net.net" ...

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