ICANN launched the new gTLD program to increase competition and choice in the domain name space. The release of more than 1,500 new gTLDs (generic Top Level Domains) is the biggest shake-up of Internet since the founding days.
Examples of new gTLDs is .club, .restaurant, .berlin, .photography and .agency.
Take as an example the fictive company "Very Nice Video Agency" - since video.com was obviously already taken, and they wanted also their domain to tell that they are an agency, they went and registered the domain "verynicevideoagency.com". With the new gTLD they could have chosen to register "video.agency" instead, and have a short, informative domain name.
The many new gTLDs are launched to create a platform to innovate the Internet and to open doors to increase choice on domain names.