Netflix and DC Comics...What Is Next

Has Superman finally been exposed to ultra kryptonite? Was Batman broken not by Bane but by a red envelope? Did the GoCollect Universe just watch a bullet go into their beloved hobby? Unless you have been living under a rock, ground breaking news has emerged in regards to the fate of DC Comics... and that news may or may not be good.

Netflix won the bidding war for Warner Brothers, and that deal includes DC Comics. This acquisition would unlock intellectual property rights that could be produced for the streaming giant. The purchase would also allow Netflix to license the properties to make more money with third party deals. Netflix also intends to limit the movie run periods in theaters so that they could be viewed by their subscribers. The films would not generate big box office returns but instead would increase the number of subscribers. After all this news broke, a new player appeared in a cameo on the last page of the comic book of this story.

Paramount announced shortly after Netflix won the bidding war that they were implementing a hostile takeover bid to acquire Warner Brothers. The fight would be taken to the shareholders. The reason is Paramount needs to get bigger. If they did not act now they soon may be the small fish in an ocean of predators ready to be gobbled up. The addition of DC Comic characters to the Star Trek franchise would be similar to the Marvel-Star Wars marriage for Disney. That type of union could protect the company to survive the future. The final part of this media battle has not been written, but that does not mean it has not created ripples being felt by GoCollect members already.

GoCollect readers already wonder how this will impact DC Comics' comic book line. Many feel safe for the future of DC Comics. The success of the Absolute line is a good source for hope. DC comic books are now finally what readers think when buying new comics. Others cite the need for the company to produce more comic book characters for future film and tv projects. They believe the comic line is safe if only for this purpose. Finally, collectors place importance on the division making money. Profitability is important so why eliminate comic book revenue from the bottom line? If you are one of the people who believe these attributes will save DC Comics, let me inform you of some other facts that should be introduced into your calculations.

This writer knows many accountants. They are very nice people... until it comes to a bottom line. Humans and their well being morph into spreadsheet fodder. Imagine a car company calculating how much it would cost to fix a car to be completely safe versus how much it would cost to deal with the problem later. The Pinto team cut a safety fix for profitability that ended up costing people their lives. Financially based decisions is the driving factor for some companies. What influences car makers, meat distributors and others are the same factors that drive decisions for comic book publishers. The people deciding the fate of DC Comics will not be fans but villains more ruthless than Joker and Darkseid combined. The only thing that matters to these vile creatures is the bottom line, and if those expenditures are currently producing comics they would perhaps be better spent elsewhere.

When Disney purchased Marvel they were not looking to get into the comic business. They feared their beloved characters soon entering into the public domain. Disney needed a new source of intellectual and licensing properties, and Marvel had them for sale at a bargain price. Marvel assets were undervalued because buyers only saw the tip of the iceberg. The mouse was different with their vision. As a result, Disney produced the MCU while Marvel only entered into film deals with film studios for pennies on the dollar. The value of DC Comics is their vast character and story library. Decades of characters and their stories could be rolled out and still so many would not see the light of day on the silver or small screen.

Small profits from comic books also is not an indicator that the comic book line will continue. Warner Brothers made millions in the cable tv business. Years later they sold the Timer Warner Cable division to Charter Communications. The reason was because it was not a main segment of their business going forward even if profitable. The resources spent maintaining a cable company were better spent elsewhere. Why would Warner Brother's potential suitors keep producing comic books and making small profits when those resources could be re-allocated into studios who could produce tv and film series for their streaming platforms?

Licensing DC Comic characters to third party companies to publish comics could also be a non starter. Profits are in media deals, so who would a new publisher want to do the heavy lifting only to see small returns for their work? Independent comic book companies could see greater potential returns investing in their own characters rather than DC Comics' line. The potential of negative blowback for Netflix or Paramount either as a result of edgy stories or publishing company issues is also a consideration. The future holder of DC Comics intellectual property rights would never expose those assets to a risk for small profits. Comic book profits are not worth it.

A friend of mine who once collected comics asked me a while back if they were still making new comics. He had gotten out of the hobby and honestly did not know the answer. That is quite common among outsiders. When was the last time an advertisement was seen for comics on tv? Ads for products to grow hair, lose weight, drain spaghetti faster, and the like flood the airwaves but not commercials for comics. Also ask yourself when was the last time comic books made the news in a positive way. When Superman died it was on every network. Stories on Batman breaking his back appeared in the news as well. Comic books were once important and a part of Americana like the Sports Illustrated magazine and daily newspapers. Now?

The fate of DC Comics' publishing division is part of a much bigger story going on. Even HBO is not immune. The former TV giant is an obsolete asset to Netflix and Paramount because they both already have streaming platforms. Sadly, comics are what also may end up on the cutting room floor with HBO when the smoke clears. Companies bidding on Warner Brothers are not interested in publishing comics. They want to pick the best parts of the company while eliminating the competition. Their main goal is getting the WB media library and not DC Comics publishing division.

This writer loves comics and believe they should not go away. He and the GoCollect community see the benefits comics represent and how their loss could be detrimental to our society. The loss of new readers and fans could also diminish the value of DC Comics in the long run. Consumers may no longer be able to grow up reading tales of their heroes so they may not identify as readily with their exploits on tv. This is part of their mystique and value, though it may not be a part of the buyer's plans. The problem is you and I are not accountants for either Netflix or Paramount involved in the sale. We will not be the ones making the tough decisions. Accountants will end up being the true heroes or villains in the fate of DC Comics.