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Saturday, March 8, 2003

Bill Woggon dies
(Comic Books) Via
Comicon's message board, Jackie Estrada informed us yesterday afternoon of the death of Katy Keene creator Bill Woggon. Katy Keene was a prototypical teen girls' comic character, with a loyal and devoted fanbase which still maintains a heavy trade in back-issues to this day. Writing in his weblog, Mark Evanier explained one of the reasons why:

"...Cartoonist Bill Woggon, who created Katy and her adventures, had the idea of asking readers to submit their own fashion designs for his leading lady to wear, and every story was footnoted with little captions: 'Katy's swimsuit designed by Becky Lou Freebish of Jerkwater, Alabama,' or whatever. In truth, Woggon -- and the many fine artists who assisted him over the years -- usually had to embellish and improve the readers' submissions, but he at least tried to incorporate their concepts. When other companies began imitating the same gimmick, the usual procedure was to cheat. The artists would draw whatever they wanted and then some secretary would wade through the mail and assign reader credits whenever some kid's sketch seemed vaguely close -- or if none did, they'd make up phony names. Woggon never did that."

Woggon died last Sunday at the ripe old age of 92 years. His funeral will take place on the 18th. Steven Wintle has a good collection of links for those who'd like to learn more about this admired Golden Age cartoonist.
Posted @ 12:10 AM by Dirk Deppey | permalink


One "web-nannie" law down, one to go
(Censorship) Here's good news for web-cartoonists specializing in works with mature themes -- last Thursday the Third U.S. Circuit Court of Appeals ruled that the Child Online Protection Act was an unconstitutional restriction on free speech. The law attempted to forbid people from posting content "inappropriate for minors" on their website without a mechanism to keep children from viewing it.
CNN has the details:

"The court said that in practice, the law made it too difficult for adults to view material protected by the First Amendment, including many non-pornographic sites.

"The law, signed by President Clinton and endorsed by President Bush, has never been enforced. It is one of several relating to Internet decency that courts have struck down."

You can read the decision for yourself in this PDF file.

While the ruling is a resounding victory for the right of American citizens to publish freely on the internet, the fight to keep the internet free isn't quite over yet: as Library Journal reports, last Wednesday a divided Supreme Court heard arguments about a narrower bill, the Children’s Internet Protection Act, which mandates that all public libraries place restrictive filtering software on all their web-accessable computers. A ruling is expected by July.
Posted @ 12:10 AM by Dirk Deppey | permalink


Viz moves towards abandoning the pamphlet format
(Comic Books) In what could well be a harbinger of things to come, Viz comics announced that the latest issue of the Dragonball comic book (Vol. 6, #2) would be the last. The news came in the issue's letters page, which stated in part that Viz "has decided that single-story monthly comics are not the best format for manga (which, in Japan, is published only in anthology magazines or graphic novels)." The
Anime News Network decided to investigate:

"When ANN contacted Viz to ask if the changes were being made across the board we were informed that Viz will be discussin[g] the topic in the near future but at this time no comment could be made."

Rumors of the death of the comic book "pamphlet" format have been swirling about for over a year now, but it may still be too soon to call this move any kind of death knell -- at least for non-manga comic books, which still sell better than most of their graphic-novel counterparts. Manga, by contrast, sells poorly in comic-book format, which is available mainly in comics shops; book editions, by contrast, are wildly successful in bookstores, where they account for forty of the top fifty sellers in the graphic-novel category. The move may be indicative of a long-term trend, but at the moment it still has limited significance for the non-manga comics world.
Posted @ 12:10 AM by Dirk Deppey | permalink


Coming Attractions
(Excuses, Excuses) I began writing a follow-up to
last Wednesday's speculations about a possible end to the current superhero movie fad and what it might mean for the Direct Market, but it's looking to grow to monster proportions and I'm too winded to engage in yet another all-nighter in front of the computer. Look for Part Two to appear in this weblog Monday or Tuesday.
Posted @ 12:10 AM by Dirk Deppey | permalink



Friday, March 7, 2003

Marvel's new trade terms
(Comics Retailing) Last Wednesday the folks at Marvel Comics held a press conference to discuss the
recently-announced changes to their ordering and discount policies. Recapping briefly: Marvel will now accept changes from retailers to their initial orders for a given book almost up until the date that said book actually goes to press, but because this new system screws with how retailer discounts are currently figured, that system is being changed as well, with discounts now based on the average orders over the previous year rather than the previous month. The Pulse summarizes press-conference statements from Marvel marketing manager Michael Doran as he attempts to explain the new regime:

"Doran gave VENOM #1 as an example. The on sale date of #1 is 4/23. Solicitation information in the Diamond catalog would have been released 1/29. Under the old system, all orders would have been due on 3/4 (note corrected date), seven weeks prior to shipping. Under this new system, retailers can increase or decrease orders up until 4/3, giving retailers a month to gauge interest in a book. VENOM #2 comes out 5/28, with a final order cut off of 5/8, giving retailers 2 weeks to hear reader feedback.

"This also affects the discount levels for retailers, since a single figure based on initial orders would no longer be accurate. Instead, discounts will be based on average orders over the precious 12 months. The first round of discounts has been calculated, and will be finalized this Friday. Some retailers have expressed concerns that this would penalize new stores and start-ups, but both Marvel and Diamond expect to have systems in place to help with this, with details to be announced."

Marvel and Diamond will apparently set up an online system to allow retailers to make changes in their orders; clarification of the new discount regime is supposedly forthcoming as well. Why the sudden changes? According to Marvel Chief Operating Officer Bill Jemas, it definitely isn't because of the overwhelmingly negative reaction retailers had to the stated reasons for the company's "no-overprints" policy, nope, no sir, not at all. From the same Pulse article:

"Jemas also downplayed the new terms as being a reaction to criticism of Marvel's no overprint policy. 'I haven't heard any criticism of this no overprint policy but there may be some out there,' he said. 'This does give the retailers more time to make decisions. It's no fun running a no-returns business. It's even less fun when you can't rely on a publisher to overprint. The real fun comes when you can buy something for $1.10 and sell it for $110. That's the most fun retailers can have -- this gives them more chance to do that.' The new terms do address 'a core problem which we were very concerned with.' He hopes that other publishers will move to new trade terms."

Jemas hasn't heard any criticism of the policy? Is he really that out of touch? Also: I don't have a price guide in front of me at the moment, but is there even a single example of a comic book from the last ten years selling at $110? With collectors bagging and boarding every allegedly "hot" title they get their hands on (reducing scarcity) and Marvel dropping trade-paperback collections at the drop of a hat (reducing reader demand for the original comics), the notion of even half of such an increase in value occuring for any title anytime soon seems absurd.

(I know, we've already discussed this to death; I'm just recapping for the latecomers, is all.)

Retailer reaction to the first part of Marvel's announced changes -- the new flexibility in ordering -- has been almost unanimously positive, but the reaction to the new discount regime is another matter altogether. While ICv2 itself puts a positive spin on the new terms, the comments the news website has collected from retailers so far aren't nearly so charitable:

  • Canadian retailer Jason Bardyla calls the new terms "a tremendous blow" to his business: "This is clearly a knee-jerk reaction from Marvel to save face against DC's new shared liability program. Again, another change purely for the benefit of Marvel's bottom line with no regard to its impact on retailers."

  • Virginia retailer Jerry Ringi considers the new terms another example of Marvel showing contempt for the direct market: "I think the adjustment part of their program is a step in the right direction but it's at a price and a smoke screen to decrease our discount. They keep this up and I'm thinking of going to newsstand titles. Hmm, if all retailers did this what would Marvel do then?"

  • Seattle retailer Gabriel Hagmann thinks the announced discount structure screws smaller retailers: "Now, instead of ordering more Marvel product than the previous year at a BETTER discount, we are forced to order more Marvel product at a WORSE discount. They are effectively penalizing shops whose business is actually growing? Who thought this was a good idea?"

  • Hawaiian retailer P. Margolin thinks Marvel has just pulled the rug out from under the people who sell its comics: "Marvel has imposed a unilateral new contract, with no negotiation of the terms offered to its end customers, and with an ex post facto change to the terms implicitly offered and accepted by retailers during the past year. What's wrong with this picture?"

  • Arkansas retailer Michael Tierney saw Jerry Ringi's comments about switching to newsstand distributors, and noted that Marvel seems to be screwing them, too: "I've used Ingram Periodicals for years to supplement my Marvel inventory, and this additional stock has been very important as a result of Marvel's short-sighted short-print policies. But over the last two months I have received no Marvels at all from Ingram. When I questioned this, they replied that they are being massively shorted by Marvel, along with massive damages of what stock they do receive. It looks like Marvel has anticipated this response, and already taken steps to cut off the newstand market from the Direct Market. Hey, if they don't want me to sell their books, I'll sell comics by another publisher."

  • North Carolina retailer Scott Walston has already responded to the new terms, but not in the way Marvel wanted: "Well, the new trade terms came out, and like a lot of my peers, I found out my discount would drop. So I responded by cutting my Marvel orders -- I couldn't afford the product I had wanted to buy with the new lower discount. Now Marvel is getting less money from me, because I will not bother to pad my orders."

  • Finally, in a long and caustic letter, Texas retailer William James Cuffe claims that for Marvel, it's all about control: "Marvel isn't merely glutting the market to make more money, they're doing it to tie up retailer's capital in their product, trying to prevent us from spending any money on the competition. While every turn and gesture Marvel makes they insist it's to help retailers. In truth, it can be blatantly shown that such allowances further strengthen Marvel's influence in retailer orders. It's all about controlling a market share and limiting choices."

Looking back over the past six months, it almost seems as though Marvel was trying to burn any vestigal goodwill it had with retailers, doesn't it? As I noted last Tuesday, Marvel's publishing division currently constitutes just 22% of its yearly income -- but should the current fad for superhero films (and the licensing said films produces) dry up, publishing is suddenly going to become much more important. I can see why Marvel would want to monkey with its trade terms for a variety of reasons, but shouldn't the company at least pretend to be working with retailers on this? How many times can you give someone the finger before they start treating you like the asshole that you appear to be?
Posted @ 11:40 AM by Dirk Deppey | permalink


Elfquest moves to DC
(Comic Books) In the 25th anniversary issue of this magazine (
TCJ #235), I took a look back at an essay Jan Strnad wrote for The Comics Journal #98. In that article, Strnad proposed an "Alternative Comics Cadaver Derby", listing twenty-five companies who were then publishing comics and giving the odds as he saw them on which one would go belly-up first. Fifteen years later, I found just five of these publishers still in business, and attempted to update the odds on who would "lose" the Derby by outlasting the others. My best guess was that it was a race between WaRP Graphics and DC's Vertigo division.

Call me Cassandra -- but only if you're being sarcastic. WaRP Graphics just sold the license to print and distribute its Elfquest line of comics to DC. Newsarama spoke with WaRP publishers Wendy and Richard Pini about their recent decision to let someone else deal with the business headaches for a change:

"Comic Shop Newsarama: What is the publishing plan that you and DC have agreed to?

"Richard Pini: The short answer is that the agreement involves both of our extensive existing library of material and a lot of new material.

"Wendy Pini: We can give you a general picture, subject to change. Generally speaking, what's going to happen begins about the time of this year's San Diego Con. The first thing we're going to do is release a special edition of the first issue of Elfquest, completely recolored and relettered by me, and it'll have new material, interviews, behind the scenes stuff. This will be a special 25th anniversary issue that will debut at San Diego Con.

"Also in the works, since DC is interested in breaking into the manga-style market, are manga-sized trade paperbacks. Two of our series -- Wolfrider and Blood of Ten Chiefs -- are being reformatted for manga-size and will be re-released with new material. New covers by me, new commentary and stuff like that.

"Toward the end of the year, you'll start seeing the first new material from me; it's a brand new storyline that picks up where we left off -- it's going to be a four part series. Basically, it takes the Wolfriders into the next phase of their adventures. It will be published initially in the manga-sized black and white format."

Typically, one of the companies that I predicted would outlast the others has just become the first to take a dive. And then there were four...

Update, 1:30 PM: A reader asked via email, so for the record -- the remaining companies are DC/Vertigo, Aardvark-Vanaheim, AC Comics and Fantagraphics.
Posted @ 11:40 AM by Dirk Deppey | permalink



Thursday, March 6, 2003

Short takes
(Potpourri) No time, no time -- a variety of things are calling for my attention today, so here's the news without the usual frills:

  • Fumetti.org (Google translation) is reporting the death of cartoonist and illustrator David Pascal, though it doesn't provide much in the way of details. Born in 1918, Pascal has published numerous cartoons and illustrations at home and abroad, taught at New York's School of Visual Arts, and was active in the National Cartoonists Society. Good luck finding information about him on the internet -- I came up with almost nothing.

  • The Islamic Republic News Agency makes note of a protest scheduled to take place today in Tehran, by journalists concerned with the deteriorating condition of freedom of the press in Iran, and the continued imprisonment of such colleagues as Alireza Eshraghi, imprisoned since January over the publication of a 65-year-old cartoon run by his now-banned newspaper.

  • Speaking of troublesome cartoons: The Guardian reports that Israeli Prime Minister Ariel Sharon has filed a complaint with the PCC, the United Kingdom's press watchdog organization, over a controversial cartoon by Dave Brown run by British newspaper The Independent back in January which depicted him eating a Palestinian baby. Sharon claims the cartoon was anti-Semitic.

  • Finally, The Sherman Denison Herald Democrat of Texas brings word that Austin College will present the Ohio State University Cartoon Research Library's curator, Lucy Shelton Caswell, with its Distinguished Alumni Award at a celebratory gala tomorrow. Congratulations to Ms. Caswell.

Now, it's off to work...
Posted @ 9:45 AM by Dirk Deppey | permalink



Wednesday, March 5, 2003

Dragstrip cartoonist Pete Millar dies
(CARtooning) Cartoonist Scott Shaw! posted to our message board yesterday with sad news. Given the transitory nature of our board, I've decided to quote Mr. Shaw! in full:

"My buddy Don (CROAKERS) Dougherty just called with some sad news from Ora Mae Millar. Her husband, Pete Millar, editor, publisher, hot rodder and automotive cartoonist supreme, died while relaxing at home on Friday, February 28. Pete had no known health problems and was still drawing regularly. Pete edited and published (and drew a majority of their the material with a spectacular sense of draughtsmanship) DRAG CARTOONS; he also published Gilbert Shelton's WONDER WART-HOG MAGAZINE and BIG DADDY ROTH MAGAZINE, as well as contributing to CARtoons HOT ROD CARtoons and other Petersen Publications. Besides Shelton, he also published work by Alex Toth and Russ Manning, among others. (The guy had good taste, that's for certain!) Pete even once owned a drag race car, sponsored through contributions from the readers of his magazine, and had recently done some one-shot magazines aimed at the drag racing audience. His big goal, unfortunately never achieved, was to curate a traveling art show of the best of humorous automotive cartoon art; Pete Millar does, however have a few pieces on display at the Hot Rod Museum in the Fairplex near Ontario, California. He attended the last few San Diego Comic-Con Internationals, which was where I got to know him a bit. Although never lionized by fandom, Pete (who despised superhero comics) was a good guy whose masterful cartooning influenced a generation or three of budding cartoonists (at least) and hot rod fanatics.

"RIP, Pete Millar; you'll be missed."

News of Millar's death has also reached the Drag Racing Underground forum, where afficianados are discussing the man and his legacy. You can read some of Mr. Millar's comics at his website; there are other sites which host Pete Millar's work as well. You can read a history of the magazine he co-founded, CARtoons, at HotRod.com.
Posted @ 3:45 AM by Dirk Deppey | permalink


Porn comics crackdown in Taiwan
(Censorship) In Taiwan, a sweep of bookstores on Taipei's Chung-ching South Road has led to the seizure of "numerous pornographic comic books", leading the city council vowing to pass more stringent anti-pornography laws.
The Taipei Times reports:

" 'More and more pornographic comic books are publicly circulating in Taipei and a lot of the content relates to sexual abuse, unusual sexual behavior and incest. These books are seriously damaging our children's minds,' said PFP councilor Huang Shan-shan.

"Cheng En-hsin, an official from police headquarters, said that police could currently seize only those books showing reproductive organs and the act of sexual intercourse. He said that seizing pornographic books has been very difficult, especially as there are no clear regulations defining pornographic content[.]

"In a joint press release, the PFP councilors stated that they would push for a city statute regulating the sale and lending of publications containing pictures of the human body."

Asked for comment, an official from Taipei's Department of Information welcomed the proposed statute.
Posted @ 3:45 AM by Dirk Deppey | permalink


Lynn Johnston to join Canada's Walk of Fame
(Comic Strips) After sorting over a quarter of a million ballots, the board of directors for Canada's Walk of Fame in Toronto has announced the eleven latest inductees to be honored with a maple leaf set into the sidewalk, including entertainers, musicians, sports figures -- and one cartoonist, For Better or For Worse creator Lynn Johnston.
The Toronto Star spoke to board chairman Peter Soumalias about the selections:

"Lynn Johnston was also, at first, a less obvious choice, Soumalias said. Then the board realized that publishing a successful comic strip in 2,000 newspapers in 23 countries certainly qualifies as success."

Canada's Walk of Fame can be found on Simcoe Street in Toronto’s Theatre District. A gala ceremony for the new inductees will be held June 25th.
Posted @ 3:45 AM by Dirk Deppey | permalink


The Marvel Movie Doomsday Theory
(Commentary) Okay, out with it. I've been toying with this for a few weeks now, mostly with the idea of turning it into a Journal article, but after talking it over with TCJ publisher Gary Groth I've concluded that I don't have enough information to write anything "definitive". Instead I'm going to throw it out here.

Right now, Marvel Comics is dependent on money generated by movie tie-ins for survival, either directly (option fees, profit participation deals) or indirectly (licensing fees, further profit participation deals). Non-movie licensing is probably pretty minor; there are some Activision games on the market based around characters other than Spider-Man and the X-Men, but I feel pretty safe in saying that this is the exception, not the rule. Likewise, Marvel's comics division is the weak link in the chain in terms of revenue; as we discovered yesterday, just 22% of the company's income is derived from actual publishing.

Ever wonder what would happen if that movie money stopped flowing for Marvel? Lately I've been doing just that. As I've been noting lately, the company has been signing movie deals left and right -- yesterday Marvel's press release for its 2002 Q4 earnings listed three films targeted for release this year, five films planned for release in 2004, four films tentatively planned for 2005, and five more "to be announced". (Looks like I missed one in yesterday's count.) Factor in the non-Marvel superhero movies coming down the pipeline (this year: League of Extraordinary Gentlemen and Hellboy), and you've got yourself the makings of a glut. Oversate the public's desire for such films, and they'll start looking to other genres for their entertainment.

For Marvel, this could be lethal. The company is currently $151 million dollars in debt, down from $188 million roughly a year ago. Let's suppose the glut doesn't hit until the end of next year, and further assume that the company is able to continue paying down its loans and obligations as diligently as they've been doing up to now. Knocking $74 million off that figure still leaves Marvel $77 million in the hole.

Here's where it could get grim: in November of 2001, a cashflow crunch forced Marvel to use its intellectual property as collateral to Citibank in order to borrow more money. I've done some searching, but have yet to find anything that specifically states that this particular debt has been dealt with, and that Marvel's copyrights and trademarks are no longer acting to secure loans. Let's assume it hasn't -- defaulting on this loan would effectively throw Marvel back into bankruptcy court, and while they were able to weather such indignities last time, doing so under a cloud of diminished future income potential (say, a downturn in public interest in big-budget superhero films) could greatly reduce the willingness of creditors to give the company another chance. If you know the field's been worked dry, why would you waste further seedcorn plowing it again? In short, if the company's IP is still being used as collateral, defaulting on its debt after a bust of the superhero movie fad could well force Marvel to cease publishing; it might well just be temporary, but given how soft the Direct Market is, even a temporary comics stoppage could be enough to do irrepairable harm.

As an example, what would the effects of, say, a two-month cessation of Marvel titles do to the Direct Market? We know that at least 50% of the industry is dependent on Marvel for upwards of a third to half of its income. We also know that comics retailing has a notoriously slim profit margin, with many retailers using each week's sales to pay that week's bills. It seems to me that the likely result of this scenario would be another '90s-style contraction, with a wave of store closings reducing the Direct Market to even smaller than it is already. As one reader recently pointed out only seven titles cleared 70,000 copies sold in initial orders this month; at this point, the industry really doesn't have that much further it can drop before hitting bottom. Such a chain of events would likely spread the pain around to all levels of the funnybook business, hitting publishers and distributors as well as retailers. Were Marvel to wind up in bankruptcy court again, it could, under the right circumstances, take the Direct Market out with it.

I'll be the first to concede that there are any number of questionable variables which could invalidate this theory. The loan from which I spun this scenario could for all I know be safely paid off, although you'd think Marvel would make a bigger display of trumpeting the fact if this were true. Likewise, Rich Johnston could turn out to be correct in guessing that Marvel's lawsuit against Sony could finally push the media giant to buy the comics-publishing company out, which would tie up loose ends quite nicely. Further, it's always possible that companies like DC, CrossGen and Image could step in to fill the gap quickly enough that the effect of the sudden vacuum in product could be minimized.

Gary, of course, pointed out that the theory would also be shot down if the general public turned out to be willing to support five or six superhero films a year (or as he put it, "how do you know they won't simply enjoy swallowing that much shit?"). I'm not sure I buy that one yet, but I'd be a fool not to acknowledge the possibility. Hey, the glut could in fact have no effect at all.

Like I said, it's just a theory. I could be wrong; I probably am. But I'm not quite ready to give it up just yet. In order to gauge its validity (or lack thereof), I'm therefore throwing it open to readers. Here are a few questions, the answers to which would probably determine exactly how paranoid I'm being in suggesting all this:

  • Has Marvel paid off its loan to Citibank and ended the potential threat to its intellectual property?

  • How close is Sony to acquiring Marvel?

  • Retailers: could your business survive without a steady influx of Marvel product? For how long?

Send answers, wild speculation, et cetera, to weblog@tcj.com. The usual email protocol applies: all email is considered anonymous unless you volunteer otherwise, and assumed printable unless you say otherwise. I'm genuinely curious to hear what others with more practical DM business experience think of this scenario.
Posted @ 3:45 AM by Dirk Deppey | permalink



Tuesday, March 4, 2003

Marvel declares net loss for fourth quarter
(Comic Books) Yesterday afternoon Marvel Enterprises released its 2002 Q4
financial results and stage an investors' conference call (temporary link; Windows Media Player required). The business and comics press has already poured over the affair, so I'll go somewhat lightly over the figures -- here's the gist from Reuters, Dow Jones, The Splash, The Pulse and ICv2, if you're so inclined. In any case, the most pertinent numbers can be found in this paragraph of Marvel's press release:

"Reflecting particularly strong contributions from licensing and toys, Q4 net sales rose 74% to $86.5 million, EBITDA increased 136% to $24.8 million and free cash flow increased $33.6 million to $33.1 million. Reflecting previously announced one-time, non-cash charges principally related to the Convertible Preferred Stock exchange offer in November and the early retirement of a bank loan, Marvel reported a Q4 2002 net loss applicable to common stockholders of $48.7 million, or $1.03 per share. Excluding these one-time, non-cash charges, Marvel would have reported Q4 earnings applicable to common stockholders of $12.4 million, or $0.19 per share."

Here's what I drew from all of the above:

  • Despite a fourth-quarter loss of $48.7 million, it was actually a pretty good quarter for Marvel, as far as it goes. The loss resulted from a smart decision on Marvel's part to pay down its debt and cajole owners of some 85% of its preferred-stock to convert to common stock, which saves the company money when it comes time to pay out the dividends (common-stock owners also don't vote at shareholders' meetings, another plus). This sacrifices short-term profits for the easing of financial pain down the road; the financial managers participating in the conference call were accordingly quite upbeat about the numbers.

  • The Pulse's headline to the contrary, Marvel did not top $2 billion in 2002 -- their various licensers did. Marvel saw just 15% of that amount, with total net sales of $299.1 million for the year. Let's not even get into this whole "net debt" business (total debt minus cash-on-hand equals "net debt" -- it's a theoretical tool used by governmental and corporate bodies to put a vaguely less gruesome spin on how much money they owe). Details, Heidi, details.

  • Of that $299.1 million, just 22% of that, or $64.5 million, can be attributed to net sales from comic books and graphic-novel collections. That's a 30% increase over 2001, mainly due to book sales, which were an almost negligible part of Marvel's business in 2001. Its publishing arm is by far Marvel's least important division. Explains the "fuck 'em" attitude, don't it?

  • The most old-school Marvel moment -- that is to say, the most weaselly -- occured when a caller asked about specific figures for graphic-novel sales. Marvel responded by stating that they made it a policy never to break down specific figures, but the press release they issued does exactly that: according to the "Divisional Review", sales from the company's book collections "amounted to $15.5 million in sales in 2002 compared to $5.3 million in 2001." In short, book sales grew by almost three-fold, while the rest of the publishing revenues (comic-book sales and advertising revenues, mostly) saw a more modest 11% increase. These look like pretty specific figures to me.

  • Marvel renegotiated two of the mediocre movie deals under which they were laboring, and wound up with marginally better deals. Marvel managed to renegotiate its Hulk deal with Universal to gain what's known as "first dollar gross" -- a percentage of the total box-office, before the bulk of the costs and deductions are subtracted from the figure -- but for the first film had to settle for an undisclosed cap over which they don't share in the money (this cap vanishes for any sequels). The company claimes to have also negotiated a better deal for the X-Men sequel, but weren't able to secure first-dollar gross from Fox. (A discussion of the mechanics of profit participation in film can be found here; scroll down to the section entitled "COMPENSATION: CASH, DEFERRED, PROFITS" for the meat of it.)

  • Finally, Marvel's press release contains a horse-choking sixteen movie agreements in various stages of production and development. Gone from the list I compiled is Man-Thing; added are Doctor Strange (you may now cheer out loud, Neil), Silver Surfer, Prime and another Blade sequel. This is part of the information I alluded to waiting on in yesterday's Mailbag -- more on that forthcoming at a later date, but let's just say that I'm less than convinced that this is good for the long-term health of the comics industry. We've seen such profligacy from Marvel before...

At the closing bell on the NYSE, Marvel stock was up 53¢ from Friday trading to $11.75, with reports of after-hours trading upwards of $12. Marvel investors are pleased with the report, which is really what it was all about.
Posted @ 4:45 AM by Dirk Deppey | permalink


"I got a rock"
(Comic Strips) In a truly Schulzian turn of events, the same day that brought good news for Marvel brought bad news for Charlie Brown.
The Contra Costa Times of California is reporting that visitors to the Charles M. Schulz Museum and Research Center are numbering less than expected:

"As the six-month anniversary of the museum approaches, the facility has only attracted a quarter of the attendance projected for its first year. Initially the museum had hoped about 200,000 people would visit the first year. But as of January, fewer than 47,000 visitors have shown up."

The article goes on to quote museum director Ruth Gardner Begell as assuring that the museum was in no danger of closing its doors.
Posted @ 4:45 AM by Dirk Deppey | permalink



Monday, March 3, 2003

Farewell to the Kingdom
(Comics Retailing) Chicago's oldest comics shop, Comics Kingdom, closed its doors for the final time last Saturday. Television station
WMAQ took notice:

"Over the years, the store has sold to customers from as far away as Europe, South America and Japan.

"However, owner Joe Sarno said he decided to close the store because most of his business is now done over the Internet."

According to Comics Kingdom's website, the store first opened in December of 1971 as The Fantasy Shop, and underwent several name changes before settling into its current name in 1980. Its owner, Joe Sarno, founded the Chicago Comicon in 1976, which went on to become the WizardWorld Chicago convention
Posted @ 4:15 AM by Dirk Deppey | permalink


Darna returns
(Subject) Back in
November I told you a little bit about the long tradition of comics in the Philippines, including Mars Ravelo's popular superheroine Darna. A mixture of Wonder Woman and Captain Marvel, Darna was intensely popular with Pinoy children of the 1950s and 60s. Now she's back, celebrating her 50th anniversary with an new three-issue mini-series. The first issue made its debut last Friday; The Manila Times reflects upon the character's enduring popularity:

"Darna is a cultural icon born at a time when the Philippines was struggling to come out of the devastation of World War II. She served as a salve to a country looking for a champion.

"In the very first edition of Darna comics, she faced the asp-haired Valentina, a Medusa-like arch villainness with an army of snakes. The first episode was such a hit that Darna instantly became part of Philippine lore. Fans couldn't get enough of Darna even though the comics came out weekly.

"Darna's film debut came soon enough -- less than a year after the comics hit the streets. Down the road, at least 15 Darna movies have been made, starring top actresses."

Two pages from the new comic book can be seen at this Darna fansite.
Posted @ 4:15 AM by Dirk Deppey | permalink


Monday Mailbag
(Commentary) Last week brought a goodly amount of email, and it's time to take a look at the most interesting of the lot. We begin with the ongoing discussion about the Neil Gaiman/Todd McFarlane feud over Miracleman. A letter in
last Monday's Mailbag offered up an estimate of who owned what rights to the character. This week's first correspondent begs to differ:

"This is how the percentages go. Initially, when Marvelman started up in Warrior (based on a belief it was in the public domain and could be 'seized'), it was divided thus:

"Dez Skinn 20% / Alan Moore 40% / Garry Leach 40%

"Alan Davis comes on board, everyone gives Davis a piece so...

"Dez 10% / Moore 30% / Leach 30% / Davis 30%"

"Eclipse buy Leach and Moore's rights, Davis doesn't gets consulted, gets pissed off, gives his lot to Leach, which also get snapped up by Eclipse. So

"Eclipse 70% / Moore 30%

"Moore gives his share to Neil Gaiman and Mark Buckingham. Todd McFarlane buys Eclipse. Bucky gives his share to Neil to manage. So.

"Todd 70% / Neil 30%

"Unless there is, as rumoured a reversion clause in the Eclipse contract after a period of non-publication. In which case

"Dez Skinn 10% / Neil Gaiman 30% / Garry Leach 60%"

Is anyone surprised by the Rashomon-like nature of all this? I must confess to being over my head at this point. Then again, if it were a simpler matter, Neil and Todd probably wouldn't be at loggerheads at the moment.

Last Monday's Mailbag also brought further letters concerning Marvel's new attempt at an Epic imprint. As you'll recall, I was more than a little cynical about the deals the company was offering. Our second correspondent has offers up another example for comparison:

"Regarding the phrase 'creator participant' in the Epic story: it's most likely the same thing as 'creator participation', which DC has been using for a while now. I'm not sure of the exact details thereof, but Warren Ellis claims it's a decent deal for creators:

"At this point, everything I'm doing is either creator-owned or 'creator-participation' -- which means I and my collaborators get more control and a much bigger slice of the revenue pie than a regular company-owned project (like the 15% of the development option fee paid to DC/Wildstorm by Warner Brothers to consider PLANETARY for television that I just received, moo hoo ha ha). This would seem to me to be close to an ideal situation -- owning and controlling my own work, working in tandem with publishers to ensure the work is done properly and gets seen in the right places and makes us all some money. That I can achieve this while not exactly burning up the Diamond sales charts is indicative only of the fact that any bastard can do it if they put their mind to it and they're prepared to take the long view. I'm far from the cleverest writer in the business, but I'm damn sure that when I'm forty-five I won't be producing fifty pages a month that I'll never see a penny off again."

There's decent deals and there's decent deals. My understanding is that in the more legitimate publishing realms, that 15% is the amount the agent or publisher is likelier to take than what the creator gets. The only creator to actually tell me his or her take of such a deal is one of the artists Fantagraphics publishes, and both discretion and the obvious conflict of interest prevents me from saying much more, but I will say this: said artist kept considerably more than 15% of the money. Most if not all creators who publish through non-corporate companies and retain ownership of their creations would probably scoff at such an amount -- I don't mean to knock Warren Ellis, but it sounds like he's bragging about getting paid in dimes rather than the customary nickels.

I suspect this is why Marvel's been so eager to hook up online fans to Epic projects: they're vocal about their enthusiasm, and they don't have the business savvy that many of the more experienced indy cartoonists possess. As I noted a week ago, I've heard from several such cartoonists who approached Marvel with possible projects but balked when shown the terms and were subsequently shown the door. Having seen actual creator-friendly contracts, they weren't quite so willing to sign on the dotted line.

It's also a matter of trust, of course. The only person I'm aware of who's got a "profit participation" deal with Marvel at the moment is Stan Lee, and look where that got him. Marvel's track record in this regard is less than sterling.

Last Tuesday's look at the initial comics-shop orders for March drew a fair amount of mail as well. Correspondent #3 writes:

"Powerpuff Girls #36 (7,923 copies)
Looney Tunes #100 (5,454 copies)
Betty and Veronica #186 (2,801 copies)

"Any way to find out what the newsstand/grocery store sales are for books like this? I would imagine that there could be around 8000 copies of 'regular' Powerpuff Girls books sold in a week or two in bookstores and Wal-marts. That's really sad when properties with built-in mainstream appeal aren't pushed like they should be. I'm just glad I go to a shop that makes its dough from spandex books but still has a well-stocked section of kiddie comics.

"On the other hand:

"Metal Hurlant #5 (4,754 copies)
James Kochalka's Sketchbook Diaries Vol. 3 (1,081 copies)

"Woo-hoo! I have actual limited editions! I'm gonna get rich off these two books in a few years!"

As a certain Maggie Chascarrillo once said, "Don't count your eggs before your britches is hatched." Regarding your question, getting ahold of newsstand data is difficult. Last I checked, publishers had to file information with the post office which includes some limited circulation information, but it's vague -- if I remember right, it's little more than a yearly average of all sales, with newsstand, Direct Market, overseas sales and subscriptions all lumped into one. Beyond that, it's all proprietary, and hard to come by.

Our next correspondent is worried by the numbers as well:

"What's really interesting about the latest ICV2 Top 300 is the wide gulf between the top 8 books and the next 50 or so. Basically, only 8 books clear 70,000, which is all that's keeping the direct market afloat right now. Very, very fragile."

I'm currently nurturing a theory as to just how fragile the DM is, but don't want to get into specifics until I have a little more information; tomorrow's Marvel investor's call just might provide me with what I need, but we shall see.

Our final correspondent gently but firmly takes me to task for some things I said about retailers while looking over the numbers in the same entry:

"My name's Amanda Fisher, and my partner and I own a comic book store in Missoula, MT. I've been working behind a comics counter for about eight years, though I've been an owner for little over one year. I've been reading your blog regularly after being directed to it so frequently by my friends in retail and others who work in comics, so first, thank you for an interesting and intelligent read.

"The reason I'm emailing you, though, is to tell you how frustrating it is when direct market retailers are all lumped together as though we work toward the same goals. It's easier to describe the book trade as one entity; at least most of the larger outlets making it up are part of large chains with similar goals. The direct market is often thought of that way, but it isn't similar at all, and the reason I'm bringing it up to you springs from your comments, 'Retailers whine in ICv2's Talkback section about the lack of kids' comics, while the ones that do get published never seem to get ordered. Retailers whine about the lack of good girl-centric comics, while the ones that do get published never seem to get ordered.' The retailers who are asking for more kids comics and more girl-centric comics are the retailers who are ordering them. Unfortunately, not all (or even a majority, apparently) of the other retailers in the direct market have those same goals.

"I have a small store, so what I order doesn't make much of a dent in icv2's initial numbers (our store's order would make up less than half a percent of the Shonen Jump initial orders), but I order all of the titles you listed, I have a designated Children's section and a designated Young Adult section in my store. We created a large display for Shonen Jump when it premiered, and we also focus on stocking comics that would appeal to older and younger women. I am fairly vocal when it comes to these kinds of comics; I ask any publisher and creator who will listen to me for more and increasingly better comics aimed at children and ones aimed at women, though I do understand when they don't put their efforts into stories that aren't supported by our current market.

"I have plenty of ideas about why kids comics and girl-centric comics aren't ordered (or selling well, really) in many stores, and they lean more toward those retailers not having the knowledge and experience to properly recommend and push those titles to the right readers than assuming that they just don't want kids or women reading comics.

"But I did want to jump in and say that you are probably confusing those of us who do 'whine' for more kids comics with those retailers who don't ask for and don't order them."

I suppose I could explain my sweeping generalizations away with something pithy like "You do know this is all written at 2 AM, right?", but you bring up a valid point.

I'm glad to hear about your store; if there were more like it, the Direct Market wouldn't be in the awful mess in which it currently finds itself. I'm lucky that there are in fact several good, wide-ranging retailers here in Seattle, like Xanadu Comics and Comics Dungeon, and even a few artier bookstores that carry comics (Confounded Books being my favorite). It's a far cry from living in Arizona, where most retailers simply didn't have any interest in the sorts of comics that appeal to me. I had to work like a dog to chase down the titles I wanted (exception to this rule: Tucson, which when I lived there had a few decent shops).

I certainly don't mean to lump far-sighted retailers like yourself into the same boat with all the Comic Book Guy clones. The fact remains, however, that you're in the minority. I mean, I undoubtedly don't have to tell you what a hot seller Shonen Jump is -- from the sound of things, your balance sheet does this just fine -- but the news that manga is the hottest selling form of comics hit the rest of the industry far after the fact. There's a reason for this. The Direct Market, by and large, is an almost hermetically-sealed bubble of retailers and fans with like-minded interests, and that bubble is notoriously resistant to anything that doesn't cater directly to its occupants' prejudices. The popularity of Japanese comics has been known for some time now; certainly long enough for national retailer orders to reflect this fact. And yet it doesn't. Why? Because most retailers don't care for that sort of thing, and the idea that other people might -- and that thay might buy it, putting money in their pockets -- is completely alien to them. If a Borders manager decided to stop carrying romance novels because that sort of thing didn't appeal to him or her personally, the head office would likely as not fire the person: they like the money, even if our theoretical manager doesn't care.

Much of "mainstream" comics culture, by contrast, sneers at the very thought of other kinds of comics appealing to anyone. "Stories about ordinary people living their lives? Who needs that crap?" No one, unless you're one of the millions of people who, say, made Oprah's Book Club so successful. But their dollars don't matter, right? Ignore the fact that the top-selling graphic novels in bookstores at the moment include romance comics like Love Hina and Chobits -- that stuff sells to girls, after all. If autobiographical works are so unmarketable, why does Harvey Pekar (surely among the biggest offenders) keep getting such interest from the mainstream? The real mainstream, I mean; David Letterman, HBO and the like.

The proof is in the numbers, and at the moment, Shonen Jump makes for a convenient Exhibit "A". The first issue sold over a quarter of a million copies; by all accounts Viz Comics has been extremely pleased with the reaction their efforts has received... on newsstands. In the shops, the title can't crack five digits.

You refer to retailers' naivete in selling other kinds of comics, but some of the things they could do to broaden their market are so basic as to be almost not worth mentioning. How about putting posters in their windows of characters other than Spider-Man and Wolverine? How about not shoving the manga and non-genre titles in back? How about actually telling someone the other books are there, and displaying them more prominently? Any idiot could come to these conclusions if more than thirty seconds of thought were applied. I see little evidence that more than a handful of retailers are taking these kinds of steps; I'm grateful for the ones like yourself that do, but it's not enough. The industry is dying slowly, and all its movers and shakers can think to do is to pour on more of the same thinking. You think I'm a fatalist in these matters? My employers have been beating their heads against this particular wall for decades, with no luck whatsoever.

I sincerely doubt there's much I can do about this, but I like the industry too much not to at least try raising my voice a bit. If it seems that I focus on more shortsighted elements of the funnybook market to an excessive degree, Amanda, it's because you clearly don't need the reminder. They do.

Like the sidebar says, send email to weblog@tcj.com -- all email is considered anonymous unless you volunteer otherwise, and assumed printable unless you say otherwise.
Posted @ 4:15 AM by Dirk Deppey | permalink



Sunday, March 2, 2003

Marvel does something right for a change
(Comics Retailing) In a surprising turn, Marvel Comics altered its terms of sales in a way bound to please retailers rather than anger them. (They made two changes actually; we'll get to the other one in a bit.) Beginning with the February order form and orders placed after March 10th, the cut-off date for initial orders will be eliminated, allowing retailers to alter their orders for Marvel product almost right up to the time the books are printed. Scooping the crowd,
Newsarama's Matt Brady explain the move's effect:

"In other words, retailers can now gather information from customers and place orders 20 days before a book goes on sale. This move will virtually eliminate the problem of the current ordering system for Marvel, where retailers had to commit to orders of a #2 issue before even seeing, or gauging reader response to issue #1. The move gives new series (such as Marvel’s Tsunami titles) a chance to succeed by being ordered on demand, rather than retailer speculation and guesswork. The impact of the move could narrow the gap between order numbers for Marvel issues #1s and #2s, which usually are roughly 50% of the first issue’s orders."

Brady's article goes on to characterize retailer reaction as largely "pleased overall, with many retailers reporting surprise that Marvel is taking a leadership role in the retail side of the market." He quotes Mile High Comics owner Chuck Rozanski's reaction this way:

"Marvel management receives, and sometimes well deserves, extreme criticism from the comics retailing community, but this is a case where Marvel has gone to war for comics retailers in order to breach a wall of self-interest that Diamond has constructed over many years. The fact that the Jemas team was able to get the concession from Diamond that they would now allow retailer order increases and decreases on Marvel products right up to the time of publication, with no financial penalties, is the first significant change that has been made in the distribution of comics since Diamond finally forced their last competitor (Capital City) out of business."

Not so fast, said Canadian retailer Daniel Spanky in the comments section:

"Marvel's terms of sale, including returnability, order reductivity, and re-order fees were set by Marvel, not by Diamond. There are five sets of terms and conditions agreed to when ordering through Diamond: Diamond's, DC's, Dark Horse's, Image's and Marvel's. Diamond does not, cannot dictate terms to brokered publishers.

"The concept of 'financial penalties' on re-ordering Marvel product is wrong. Simple as that. There are NO re-order fees for Marvel, DC, DH, or Image products. The 3% re-order fees only apply to merchandise where Diamond is the vendor. The brokered publishers' terms of sale all make (made?) specific reference to the re-order penalty, saying that they (the publishers) waive the re-order fee."

This aside, Spanky welcomed the change in ordering procedure, as did all others commenting in the thread. Interesting wrinkle: an Ohio shop manager going under the name "QCCBob" noted that with retailers now able to adjust their order further into the solicitation process, the "top 300 list" of initial order figures were now even less accurate -- or rather, they're now only as accurate for Marvel as they've been for the other companies, which allow re-orders.

The reaction to the other change Marvel announced, however, was more cautious. Retailers' discount levels will now be figured by averaging orders on Marvel product over the previous twelve months, a move Marvel claimed would "help temper the effect of down months you sometimes experience because of volatile economic conditions or changes to Marvel's own publishing schedule." Brady noted that some retailers suspected they would lose discount points under the new system.
Posted @ 2:00 AM by Dirk Deppey | permalink


British comic book banned in Birmingham airport
(Censorship) The latest issue of UK comic book The Dandy has been banned from magazine racks in Birmingham International Airport, due to a plastic toy gun which came attached to the comic book. The "gun", when fired, emits a little blue fist which punches its intended target. Britain's
ITV has the report:

"A spokesman for Dundee-based publishers DC Thomson [which publishes The Dandy] said: 'It's obviously a toy and nothing more. It might be mildly irritating if a kid fired it at your head over and over, but it's hardly a weapon of mass destruction.

" 'I don't think a terrorist would get very far if he tried to hijack a plane with a free toy from The Dandy.' "

A spokesperson for the airport noted that they were simply following security guidelines.
Posted @ 2:00 AM by Dirk Deppey | permalink


Sunday Scraps
(Potpourri) The following are a series of links that have collected in my notes but for a variety of reasons never made it to this weblog before now:

  • Lebanon newspaper The Daily Star offers up a remembrance of recently deceased cartoonist Mahmoud Kahil, offering a biography of the man before focusing on his savage attacks on Israel's treatment of the Palestinean people -- cartoons which have led some of Kahil's critics to label him anti-Semitic.

  • Indy cartoonist Rich Henn has spent the past couple of years shooting footage for a documentary on his fellow independent and self-published cartoonists. After shooting over 45 hours of film, he's decided to instead release several documentaries, with the first, Scenes From the Small Press: Mainstream Raw, to be released on DVD shortly. He's offering a very large RealMedia file (warning: 48.4 MB file) for download as a teaser, which features Frank Miller, Dave Gibbons, Matt Wagner, Joe Quesada, and a bafflingly context-free segment featuring a teary-eyed Colleen Doran.

  • Via Three River Tech Review comes a link to a Brazilian fansite devoted to writer Alan Moore. The site's in Portuguese, but English-speaking readers will want to check it out anyway for the images of pages from the never-released Big Numbers #3.

  • The Washington Post reports on an intense rivalry between two hip-hop magazines, The Source and XXL, with insulting cartoon posters serving as one of the principal weapons in the feud.

  • Newsarama's Mike Sangiacomo takes a look at the resurrection of a satirical cartoon magazine many had written off for dead: Cracked.

  • Let's move on to manga. On our message board, Barney Sheehan pointed to an article in Publishers Weekly, which uses the print success of web-cartoonist Fred Gallagher's Megatokyo as proof of a rising reader apetite for manga-style comics from American artists. Manga's also become increasingly popular in Europe, according to Japan's Daily Yomiuri.

  • Also from The Daily Yomiuri comes this profile of Japanese manga artist Tatsuya Egawa, whose comics series Nichiro Senso Monogatari (The Russo-Japanese War Story) charts unpleasant aspects of Japanese history that the public generally prefers to ignore. Meanwhile, Sarah Dyer links to an interview with women's manga creator Chiaki Mukai.

  • Legendary Indian cartoonist R. K. Laxman has just completed a speaking engagement in the Middle Eastern nation of Oman. The Times of Oman has a long feature on his appearance to a packed hall of admirers.

  • Back to America: veteran editorial cartoonist Charles Brooks returned to his hometown of Andalusia, Alabama to give a series of talks last week. Hometown paper The Star News profiles the artist, whose long and illustrious career included anti-racist cartoons which earned him the emnity of the Ku Klux Klan.

  • New York newspaper The Stamford Advocate speaks with local cartoonist Jerry Craft, creator of the syndicated daily strip Mama's Boyz.

  • Bil Keane, legendary creator of the daily comics panel The Family Circus, recently sat down for a chat with Bay-area paper The Contra Costa Times about his long career.

  • California's Orange County Register profiles cartoonist Brooke McEldowney, creator of the daily strip 9 Chickweed Lane.

  • Off in Connecticut, The Hartford Courant has noticed a new voice in the controversy over a giant roadside statue of a woman's head -- Zippy the Pinhead.

  • In the Journal's new interview with Gary Panter, the cartoonist asks in an aside, "I wonder where Mark Beyer is?" While an address isn't forthcoming, Panter might be able to get in touch with his old comrade-in-arms by paying a visit to Beyer's website.

  • The L.A. Weekly offers a two-page strip by Harvey Pekar and Gary Dumm, detailing Pekar's experiences at the Sundance premiere of his new American Splendor biopic.

  • Writer Warren Ellis and Artist Colleen Doran, whose new science fiction graphic novel Orbiter is expected shortly, have collaborated on a new comics short story entitled "Superidol". You can read it at the Artbomb website.

  • The South Florida Sun-Sentinel takes a look at 20-year-old self-publisher Ryan Hentz, who's attending this weekend's MegaCon hoping to drum up business for his new sci-fi comic book Dymsata Chronicles.

  • Jorn Barger's Robot Wisdom Weblog recently pointed to the website of visual information theorist Edward Tufte, which includes a section devoted to answering reader emails. Naturally, it wasn't long before the subject got to cartoons and comics.

  • Hot off of celebrating his 100th column, online comics critic Chris Allen offers tips on how you too can write a comics review column. Of course, he forgot one important tip: use lots of exclamation points and recount the entire plot of every comic you review.

  • Okay, ink-monkey -- can YOU draw a self-portrait in five lines? (Link via Pop Culture Junk Mail.)

  • Finally, a reminder that tomorrow is International Read a Comic Book Naked Day. Let's all do our part, shall we?

After that last item, I feel almost like I should throw down some kind of disclaimer before saying "see you Monday."
Posted @ 2:00 AM by Dirk Deppey | permalink



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