by Gamal Hennessy
Last week I talked about the difference
between copyright and trademark. I wanted to explain that first so that
this post would make more sense. The development of comic book properties as
major licensing programs has implications on the way comics will be produced
going forward. It will also impact the way creators should look at their
properties and their creator owned contracts.
The list of mainstream cross over comic book properties is
familiar to everyone in the industry. The list includes the X-Men, Batman,
Fantastic Four, Spider-Man, Green Lantern, the Avengers, and Superman. It will
soon include Guardians of the Galaxy and maybe even Ant Man and the Justice
League. Everyone in the industry is
aware that there is more potential for explosive success now than any other
period in the industry. What does this mean for comic creators? What do you
need to do if you want to thrive in this new golden age?
Comics as an Independent Business
There was once a point where the comic book business was
purely about selling physical print copies of single issue comics. When I was a
kid (back before TV had remote controls and everyone rode in a horse drawn
carriage) a comic book was $.25 and it had very little competition in terms of
entertainment. There was no cable TV, no cell phones, no home video game
systems, no DVD’s and no internet. People
read comics because there was little else to do. As little as 15 years ago, the top
300 comics sold 6.64 million units. Very
little money that the comics industry makes actually comes from selling comics.
Monthly sales figures have risen in recent months, but the revenue from this
activity is dwarfed by the “ancillary market.”
Comics as a Mainstream Springboard
Several factors helped comics evolve out of a purely print
model to a more integrated business. The most significant factor is the jump to
movies. When direct market comic book shops became an economic liability to
publishers, there was a move to gain more access to major bookstores. This led
to a higher volume of graphic novels (because a GN could survive on the shelf
of a bookstore where a flimsy comic couldn’t). Works in this medium, most
notably the Dark Knight Returns helped spark interest in Hollywood to create a
major motion picture in 1989 with Batman.
That began a push for more films based on comics. Now the summer movie schedule has 2-4 comic movie releases almost every
year. Major comic book conventions that used to focus on buying rare comics
and meeting artists are now more about upcoming film trailers and meeting
actors. As of this month eight
of the top 25 grossing films of all time are based on comic books. Comic
properties have clearly developed from an insular type of entertainment to widespread
popularity.
The Secondary Market
Comic based properties can generate money in several ways
when they are associated with a movie. A film creates a retail environment
where there is a higher demand for licensed merchandise. Merchandise is a broad concept here that covers
everything from clothing to household items to food to games and many other
consumer articles. Depending on the
film, the merchandise deals can generate more money than the movie itself. When
I was with Marvel in 2002, I worked on the licensing program for the Hulk. The
film made two hundred and forty five million. By comparison, the
licensing program made more than one billion dollars. A single
issue of the Hulk comic in 2012 comes in a distant third generating less
than $184,000.
Your Comic in the World Beyond Comics
As film, television and video game producers look for new
properties with strong stories and an established audience they will continue
to look to comics for inspiration and opportunity. It is not just DC and Marvel
capitalizing on this trend. Since the mid 80’s, independent comic properties
like Teenage Mutant Ninja Turtles, 300, Spirit, Spawn, Hellboy, Scott Pilgrim
and Kick Ass have all found producers willing to transfer the stories from the
page to the screen. Comic creators need to be aware that the potential for a
wide market is possible for any property. It is true that the vast majority of comics will not get big screen exposure but it is
prudent to consider the life of your property beyond the comic when you are
considering a deal with a publisher. This means not agreeing to contract
terms that do not compensate you for exposure of your property in the world
beyond comics.
I am aware that the main focus of fledgling creators is
getting their work out there and closing a deal with a publisher. I know that many
creators do not have a great deal of negotiating power in their dealings
with large publishers. But as the owner of a potentially profitable property,
you need to weigh the benefit of short term exposure and financial gain with
the potential for film, TV and merchandise revenue. You will be able to make a
prudent decision about your property once you take all the factors into
account.
Best
Gamal
PLEASE NOTE:
THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE A LICENSEING
OR INTELLECTUAL PROPERTY ISSUE, DISCUSS IT WITH YOUR LEGAL ADVISOR OR CONTACT
C3 atgamalhennessy@gmail.com FOR
A FREE CONSULTATION.