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DC Cut Ties with Diamond Comic Distributors

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In an attempt at a Friday news dump, DC Comics will no longer be distributed by the industry-leading comics distributor, Diamond Comics Distributors. The announcement was made in an email sent to retailers Friday morning.

Instead, DC has instructed retailers to fulfill products through Lunar Distribution and UCS Comic Distributors for monthly comics and Penguin Random House for graphic novels and collected editions.

Retailers have responded negatively, tearing the comic publisher apart. One described the decision as a “bloodbath.” So far, DC has not responded to retailer criticism. Lunar and UCS are sister companies of two comic retailers, forcing stores to add profits to competition. DC claimed the move was to “improve the health of, and strengthen, the Direct market as well as grow the number of fans who read comics worldwide.” It’s unknown and unclear how the cutting of a distribution channel will grow fans worldwide.

The email claims that the new decision allows for an “efficient operational supply chain,” though again, having to deal with multiple contacts for distribution (now at least three) isn’t exactly optimal.

Retailers have expressed anger and frustration as the decision will increase costs for them and seems to be a move to eventually move out of the direct market. It is absolutely a move to be less reliant on it.

One retailer told us:

DC Comics is a prime example of wartime profiteering in 2020. Publishers — if you want an example of how to appear tone deaf in the middle of two global crisis, look no further than DC Comics and their actions since March.

Another retailer told us:

This action is not about breaking a monopoly, or they wouldn’t be reducing the distribution options. This decision reeks of men in suits with no connection to comics as an industry or art form making decisions with mo respect for it.

This is a direct threat to the periodicals market, and there is no rational reason for this action other than a shift away from publishing periodicals and moving purely to digital and OGN formats.

Putting this decision out at any time is atrocious. Fling it in the middle of a pandemic and national unrest is nothing short of insulting

Diamond will be fulfilling orders through June 1 and will not solicit DC titles further. DC had been exclusively distributed through Diamond until earlier this year. After Diamond shut down due to the COVID-19 pandemic in mid-March, DC announced plans to find alternate distribution methods and announced a partnership with Lunar and UCS which were spun up as businesses in April. Multiple smaller publishers have also made the decision to no longer distribute through Diamond.

Some excellent thoughts on the arrangement by DC with the two new distributors can be heard by our friends at the Tales From the Comic Shop podcast:

DC has been consistently the second biggest publisher in the market with roughly 30% of units and dollars sold through Diamond. The move comes in curious decisions over the past year including making it more difficult for press to review comics, which is the antithesis of helping to “grow the number of fans who read comics worldwide,” and seems to have decreased the number of reviews gathered by aggregate sites.

The decision is perplexing.

You can read the message to retailers below:

Meet Your New Comic 800 lb. Gorillas, DCBS and Midtown Comics. The Same as the Old

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It’s been a crazy day with for comic news. Things first began with Diamond Comic Distributors announcing they were expecting to return to normal distribution in mid to late May. Then DC announced they would return to normal next week courtesy of two new distributors, Lunar Distribution and UCS Comic Distributors.

DC’s plan looks like it has come together in the last week or so as both domains were only recently purchased.

UCS Comic Distributors was registered on April 8 while Lunar Distribution was on April 13.

But who are these mysterious entities?

Newsarama has confirmed that they are sister companies of two mail-order juggernauts Discount Comic Book Service (DCBS) and Midtown Comics respectively. They are two of the largest direct market retailers and Midtown has handled subscription sales for years.

Lunar is handling distribution to comic retailers based in Alaska, Arizona, California, Colorado, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, North Dakota, Nebraska, New Mexico, Nevada, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming. They are also handling distribution to the Canadian provinces of Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

USC is taking on distribution to stores in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Louisiana, Massachusetts, Maryland, Maine, Mississippi, North Carolina, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, Vermont, West Virgina, and the District of Columbia. The Canadian provinces they’re taking point on are New Brunswick, Newfoundland, Labrador, Nova Scotia, and Quebec.

For retailers outside those areas, they’re encouraged to reach out to UCS, Lunar, or Diamond.

Why new companies and the secrecy?

The first is the optics. DCBS and Midtown are competitors to stores. This is money in the pockets of competitors. Though who was behind things would eventually be found out, so this is unlikely the reason.

The most likely reason is the risk involved and protection.

As can be seen, by Diamond’s issues paying publishers, stores have had issues paying Diamond. It’s possible the new entities were spun up to limit the chance of stores folding taking down Midtown and DCBS.

The plan is risky.

The economic outlook isn’t good with over 22 million people unemployed. Stores are struggling with many having limited hours or ability to sell items and many being closed for some time. The reality is, stores will close and leave debt behind them impacting Diamond (and possibly these two new entities) and that will ripple upwards to publishers and creators.

It’s unknown what stores will even be able to sell in the new landscape.

The reaction from stores has been mixed and what this means for the industry going forward is unknown.

Right now, stores need to scramble to get their accounts open and orders in for next week.

DC Comics Return to Comic Stores and Digital April 28

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Not too long after it was announced that Diamond was looking to return to normal distribution some time in May, DC drops a bombshell that its comics would return April 28.

The publisher will be pursuing alternative distribution means to get product to the stores that are able to accept it. They will be using Lunar Distribution and UCS Comic Distribution and retailers will pick which based on their region.

This is a big move as Diamond has had a lock on the direct market distribution for decades and for this to happen it would mean DC’s exclusivity deal is over.

There’s numerous questions remaining such as what will happen to the comics that were to be released these last few weeks and if this will remain the status-quo once Diamond is back and running.

Expect escalation from other publishers!

Below is DC’s full announcement along with what will be on shelves:

DC ANNOUNCES ITS RETURN TO COMIC BOOK STORES ON TUESDAY, APRIL 28

New DC Comic Books to be Available at Open and Operating Comic Book Retailers

DC comic books are returning to comic shops beginning Tuesday, April 28. After a four-week break, fans can celebrate that new superhero stories will be arriving at operating retail stores.

After surveying more than 2,000 stores across the U.S. and Canada, it became clear that many comic book store owners are finding new and creative ways to get books to the fans who want them. To find stores that may have the new titles, visit the comic shop locator webpage:

www.dccomics.com/comicshoptracker

Check the page often, as it will be updated with new retailers.

The new slate of titles includes (also available for digital purchase at participating digital retailers):

Tuesday, April 28:

  • New Comic Books:
    • Batman #89 (3rd Printing)
      • Featuring the first appearance of Punchline!
    • Daphne Byrne #4
      • Daphne gains a new ally as she continues to wrestle with the malevolent forces within her.
    • The Dreaming #20
      • The unbelievable finale to Si Spurrier and Bilquis Evely’s epic tale from the Sandman Universe!
    • Nightwing #70 (2nd Printing)
      • The Clown Prince of Crime comes to Ric Grayson and Bludhaven in this prelude to The Joker War!
    • Batman GIANT #4
      • Classic stories from the world of The Dark Knight, plus an all-new chapter of the original story “Concrete Jungle,” by Mark Russell (Exit Stage Left: The Snagglepuss Chronicles) and Ryan Benjamin!

Tuesday, May 5:

Tuesday, May 12: