What Does the Lion Forge Merger and Vertigo’s End Mean for Independent Comics Publishers?

I’ve decided to celebrate Independence Day with a new source of information for independent comic book publishers. I’ve assembled a group of professionals from the creative, business, and legal sides of comics to discuss relevant issues on a monthly basis. 

Our first question involves moves on the business side of the industry. Oni and Lion Forge are in the process of merging. DC is consolidating its legendary Vertigo line. I asked nine of my friends, clients, and associates to share their thoughts on the impact of these moves. They had a lot to say, so I hope you enjoy their insight.

Except for emphasis in limited areas, I kept the editing to a minimum. 

Thanks to all the experts who participated.

Steven Colle, Founder at Editor’s Eye View

I find that the news of the Lion Forge/Oni Press merger and the recent consolidation of DC’s title direction into three distinct age markets (DC Kids, DC, and Black Label) tells a similar story, but from different ends of the publishing spectrum. 

The former, in my opinion, is a merger of like-minded, like-missioned, and like-directed companies who saw that competing against each other made less sense than working together to play off of each other’s strengths to benefit the whole. This direction makes sense to me as they are publishers who are focused on their audience and building upon their market, which includes expansion into other media. 

However, corporate-driven DC is more focused on their own interests and how to achieve them through trial and error attempts at reaching and maintaining their audience. For them, it’s about ownership over readership and sales over satisfaction. As a result, and with a constantly changing roster of executives overseeing an industry they don’t understand, they will continue to search for the right pinch of this and dash of that which they believe will ensure the perfect recipe. However, the recipe isn’t just product; it’s people and the value they bring to the mix. People, in this case, aren’t just the creators and the staff; they include the retailers and the consumers.

Are these instances and others similar to them part of a wider pattern for smaller publishers in 2019-2020? Here’s the way I see it:

If publishing was just based on passion to create, each and every company would close their doors as soon as the funds dried up. No matter how intent small press is to get their product into the hands of their prospective audience - not just once, but over and over again – they can’t do it without concerning themselves with financial stability and growth. Otherwise publishing would be for hobbyists, not entrepreneurs and business people. Though Lion Forge/Oni and DC come at their respective markets from different perspectives, both need the consistent flow of revenue to stay afloat.

In a nutshell, this pattern will continue as long as there is awareness and understanding of the comic industry and its need for adaptation. Status quo kills business. That said, it’s the decisions that are being made to survive the changing tides, the ebbs and flows, the troubled waters that will save the ship or sink it like a lead weight.

Independent comic book publishers need to always have their eye on the prize: 

Reader satisfaction. 

Satisfied readers won’t buy just once; they will purchase again and again. They will also share this satisfaction with others, creating word of mouth and building new opportunities for reader satisfaction. Satisfaction is sales. Comics aren’t like food or vehicles. The need isn’t as great as sustenance nor is it as necessary as replacing poorly manufactured parts. Comics are a choice for our consumers. Satisfy them and they will be faithful. Fool them or force them into a false sense of necessity and they will rebel.

Thomas Allen Crowell, Esq. partner at LaneCrowell, LLP, author of “The Pocket Lawyer for Comic Book Creators”, and organizer of the continuing legal education seminars on comic book law at New York Comic Con.

Is the comic book industry heading into a period of consolidation?

This year’s merger between comic book publishing companies Lion Forge and Oni Press, as well as the recent announcement that the DC Vertigo, DC Zoom, and DC Ink imprints will be shuttered in favor of all content being released under the DC comics label, may be indicators. If so, what does that mean for the small publisher and indie creator?

To begin with, I think it’s important to understand that the economic model for larger publishing companies is not always portable to the indie creator or small publisher. Larger publishing companies have higher operating costs, compete for the same premium shelf space, and, as is the case in DC, controlled by parent companies with very specific different agendas than those in the indie comic space. In other words, consolidation may not be a necessity for smaller or niche publishing companies.

However, most creators want to be able to pitch their projects to as many different publishing companies as possible. Fewer companies may mean increased competition among creators, which can, in turn, create more leverage on the side of the publishing company, potentially forcing new creators into less favorable contracts.

There is another factor at play here besides just the economics of the publishing industry: the economics of the film and television industries.

One of the key factors driving the Oni/Lion Forge merger seems to be the production of animated content based upon their comic book properties. To this end, they will be working with the new animation studio, Polarity to produce content for movies and television. And DC hopes to revitalize its Watchman property on HBO.

To me, this is one of the bigger takeaways from what’s happening: in the wrap-up of the Marvel universe movies, Hollywood — and by that, I mean movies, broadcast and cable companies, and the so-called “over-the-top” television providers like Netflix and Hulu and Amazon — is looking for the next big comic property to fill the void. We’ve already seen forays like the Umbrella Academy, which was initially published by Dark Horse.

So, from a creator perspective, producing a comic book series which has the potential to spawn an ongoing series of films or TV shows is very much on the minds of my clients. To that end, virtually every comic book publishing deal I’ve done — both when I represent creators or when I represent the publishing company — is really two contracts in one: the publishing agreement as well as an option for the movie and TV and ancillary rights. Many times, this option agreement is the most important of the two from the publisher’s perspective.

The other factor which will be affecting comic book properties in the near future is the continued emphasis on diverse narratives and unique voices, such as properties featuring and created by peoples of color as well as members of the LGBTQ + community.

Accordingly, now would be a fantastic time for such creators to pitch a comic book series which would give voice to diverse peoples while being set in a narrative universe which can serve as a foundation for ongoing television shows and movies with the potential for sequels.

Rich Douek: Author of Gutter Magic, Road of Bones, Teenage Mutant Ninja Turtles and the Wailing Blade

1) Do you see these two events as part of a wider pattern for smaller publishers in 2019-2020?

I think it's a part of an industry-wide recognition that there is a huge, huge amount of content out there now, and the traditional market hasn't grown enough to keep pace with all of it. The core customers that make up the comic-buying world has remained more or less constant over the past 2 decades, and these people are not suddenly spending 5x the amount that they used to spend 5 years ago - yet they have 5x the amount of books to choose from every time they walk into the shop. Their dollars are only going to go so far, and many of them are so deeply invested in certain characters or stories that getting them to try something new is a challenge. 

So, I think moves like these are a reaction to that - there just aren't enough dollars in the market for expansive lines of books to succeed across the board, or for books outside of mainstream tastes to consistently be profitable, or at least sustainable. Yes, you'll have books that hit big, books that come out of left field to be the next big thing, and you'll also always have duds and complete failures, but what I'm talking about is having across-the-line consistency in terms of sales and profitability - which I think is where you want to be, so you can afford to take chances on those books that might blow up and be huge. So, one strategy companies might take is to pare down the total amount of content they're putting out, to help keep their overall costs low, and, as much as they can, focus on growing the market through new readers. I think that's a big part of DC's strategy, at least. I'm not as familiar with Oni and Lion Forge's plans, but it wouldn't surprise me if that was a big factor.

2) What should independent comic book publishers take away from these larger shifts when thinking about their own titles?  

I think DC's move, especially, is geared to try and attract new readers through the YA and Kids categories, and then have those new readers "graduate" into the core DC line, and then Black Label, eventually, and, as much as I loved Vertigo, it does seem like a smart way to go if you're looking to build a loyal audience. 

If I were an independent publisher, I'd consider ways to reach out to customers not traditionally served by the mainstream comics world. It doesn't have to be kids, but I would ask if there's a group of people I think would be interested in reading comics, what's standing in the way of that, and how I can reach them. And that's not to say you should abandon the DM or traditional comics fans - but you have to be cognizant of the fact that they only have so much money they can spend on their hobby, and as a small publisher, most of it isn't going to go to you. If you're trying to get someone to put down an issue of Spider-Man, a book they've been reading for years, and spend that $4 on your book instead, well then, you sir, have a hill to climb. If you can find someone who's not necessarily a regular reader, and show them a cool thing, it's still a hill, but in my view, one that's less steep. I think that as a company, if you can find a balance between books that draw in new audiences, and ones that serve current and traditional ones, you've got a good recipe for sustainable success.

David Gallaher, Author of THE ONLY LIVING GIRL

I see the LionForge / Oni deal and the DC consolidation as a smaller snapshot of what is happening in the larger corporate media empire. Do I think it will have ripples for the larger industry as a whole? Absolutely. On one hand, you have a talented editorial workforce that was let go. This is talent that is primed to take on new projects of their own: self-published endeavors, kickstarters, freelance work-for-hire assignments... you name it. That’s pretty cool.

On the other hand, the competition for consumer dollars is very high. It takes a lot of resources to stay vibrant in this marketplace. I think smaller publishers should absolutely be mindful of that. It’s comforting to know that DC and Oni/LionForge are both adapting.

2) What should independent comic book publishers take away from these larger shifts when thinking about their own titles?

I think independent creators and publishers should align themselves with colleagues, talent, and resources that align with their values. Go to workshops, read the trades, and more importantly get involved in the comics community as a whole. No creator is an island. To survive and thrive in this business requires learning from each other and helping our industry grow.

Stephen Pakula, Associate Director for Publishing Operations at Penguin Random House

1) Do you see these two events as part of a wider pattern for smaller publishers in 2019-2020?

Let's start with publisher consolidation. Unfortunately, I do think this will become a pattern with smaller publishers, and I say "unfortunately" because  I don't necessarily know if this is a good thing. Or rather, I worry that by combining the IP, the human resources, the business models and the fanbase of two or more publishers, that the whole has a danger of being less than the sum of its parts. This is especially important when thinking about the identity that a publisher has or wants to portray. This is not to say that all consolidation is bad, especially if it truly does make a "better" product (which, admittedly, is subjective, and means different things for different groups, whether you're on the business side or the creative side of the industry). And I can certainly see very valid reasons for consolidating publishers, a notable one being that it's very difficult to get noticed in a field dominated by Marvel and DC (and the massive Hollywood machine they are tied to), so if there's a way to strengthen your brand, you almost have to go for it. All of this is a long way to say that yes, I don't think smaller publishers will have many choices if they want to compete with the big dogs of the industry. (But more on that in the answer to the 2nd questions...)

As for rebranding, or updating individual lines, I think this is a very smart thing to do. I believe that streamlining or creating new lines allows for a clear focus on the product (regardless of whether or not it will be successful). It goes back to the publisher's identity, and how they want their books in general (and their company in particular) to be seen. A clear focus allows you to say "here are the books we publish, and here are the readers we want to connect with". And if they stay true to that, the readers will come. Which leads me into the next question...

2) What should independent comic book publishers take away from these larger shifts when thinking about their own titles?  

One main takeaway is that even though the comics industry is cool and fun and awesome, it's still an industry and a business, and sometimes these kinds of big decisions are made with that in mind. It may also seem like these changes are implemented at the expense of the creators, or the actual stories themselves. That may or may not be true (I hope it isn't), so my advice is this: focus on your stories, on the books themselves. Tell the best stories you possibly can, and put out the best product you are capable of. If you're a small publisher, don't try to compete with Hollywood. Be unique, and not a watered down copy of all the other books that are out there. Find the thing that makes your books special, the thing that only you and your company can do.  If you focus on the work itself, on creativity, the readers will come. Spider-man is cool, but we've seen him webswinging for decades. Superman is awesome, but he's been flying around even longer. Be creative. Get noticed. 

Wilson Ramos Jr. Executive Editor for Section Eight Comics

The publishing landscape is so different then it was when I started working in comics, heck, it’s different then it was just 5 years ago. In the past, a small company would be able to put out a small number of titles and make a living for themselves because they had multiple ways to distribute their comics. But since then those distribution companies shut down or got bought out and only one distributor was left and even worse is the fact that there are far less Comic Shops to get one's books into, and that is IF the distributor is willing to take on those books. To survive smaller publisher have to think differently and I think this is one of those routes some publisher might have to take. “Is this a wider Pattern for smaller publishers?” Yes, I think it’s another part of publishing that is evolving with the market, similar to how customers are now consuming their comic book entertainment. Technology such as smartphones and Internet has publishers scrambling to find ways to get their books to these readers. Partnerships such as the New Oni and Lion Forges whom titles are similar in nature, tone, and genres would fit together quite nicely has perhaps found a way to use is the various strengths to keep both companies alive the upsides are many and hopefully, this will create a larger voice for them the industry.   The downside, of course, is people have lost their jobs, this always happens with mergers. 

 I would guess that many Small Publishers will take a closer look to their fellow Publishers, no longer as the competition but as a possible companion. I’ve seen independent publisher doing this as well, crossover such as Dave Ryan’s War of The independents have spawned many independent creators to work together mini collaborations are happening, I can see a larger scale coming in the form of more mergers. As a freelancer and publisher, I'm watching this closely. There is strength in numbers and I have done work for so many small press and independent publishers that I wonder if I should start to introduce them to one and another?

Tyler Chin-Tanner: Publisher of A Wave Blue World

1) Do you see these two events as part of a wider pattern for smaller publishers in 2019-2020?

The pattern here is that publishers are starting to realize there’s money to be made in the book market, a lot more than selling individual comics through the direct market.

I’ll give Oni credit for realizing this sometime ago. Their bread and butter the last few years have been library and book sales. I’m speculating here a bit, but I think Lion Forge wanted in on that market.

2) What should independent comic book publishers take away from these larger shifts when thinking about their own titles?

Anyone going into independent comic publishing should realize that selling individual issues of comics is not very profitable. There are ways to do it, mostly by making a lot of variants and getting into the collectors market. But that has its pitfalls as well.

Alternatively, I would recommend centering your publishing plan around producing a full length book fairly quickly. Either go straight to a graphic novel, or publish issues digitally before collecting them into a trade paperback.

Or you can do what we’re doing at A Wave Blue World where we’re only publishing a single Premier Edition to give people a taste, releasing the subsequent issues digitally, and then having the full tpb available within two months.

Dirk Vanover, Attorney at Comicslawyer.com

I don’t foresee the merger of Oni Press and Lion Forge as a harbinger of things to come for smaller publishers. I believe we’ll still see a lot of publishers close and others open over the years, but mergers of comic book companies are just not that common. I don’t believe most publishers have the money or motivation to acquire another publisher, especially if the publisher is struggling. I think it’s far more likely we’ll see production studios or movie/TV studios continue to invest in or buy comic book companies, at least the ones with attractive assets..

Independent publishers should evaluate their offerings and understand where they fit within the marketplace. While it’s always a great idea to keep an eye on what your competition is doing, it’s best to continue focusing on putting out the best product you are able to and grow your business. Build a solid business and the rest will come. 

Zomburai!, independent artist and writer

It’s tough to draw a trendline with just these two points of data, but my hypothesis is that they’re both ultimately related to IP: specifically, that as it gets harder and harder to make money by printing and selling comics, comics companies are moving more towards creating copyrightable IP and selling that. As this process evolves, we can expect more and more “efficiencies” (re: malicious corporate double-speak for shitcannings) in the future. 

I don’t think these events, or how they’ve been carried out, necessarily teach indie creators anything new, but they are symptomatic of things every creator should know: that the big money is not in comics but in IP, and that comics provides no job security, even if you’re on staff.

Have fun with your comic.

Gamal

If you have questions about the business or legal aspects of your comic book publishing and you'd like a free consultation, please contact me and we can set something up that fits in with your schedule.

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE AN ISSUE WITH YOUR COMIC PROPERTY, DISCUSS IT WITH A QUALIFIED CONTRACT ATTORNEY OR CONTACT C3 FOR A FREE CONSULTATION