From Monopoly to Bankruptcy: The Shocking Decline of Diamond Comic Distributors

Let me share additional insights about Diamond Distribution’s history, its transformation into a dominant market player, and the subsequent decline of its business:

Diamond Distribution’s journey is an interesting one. It rose to become a monopoly in its industry, but unfortunately, its business has since taken a downturn. To give you a better understanding, let me break it down for you.

In the beginning, Diamond Distribution started as just another player in the market. Over time, through strategic moves and smart decisions, it managed to outperform its competitors, eventually cornering the market and becoming the undisputed leader. However, success can be fleeting, and the business that once thrived began to falter.

This decline could be attributed to a variety of factors, including changes in consumer preferences, increased competition, or even internal mismanagement. Whatever the reasons, Diamond Distribution’s business has faced significant challenges, leading to its current state.

Enthusiasts of comic books expressed joy upon hearing about Diamond’s bankruptcy, expressing sadness over its decades-long monopoly and recent troubles with late deliveries.
However, some argued that its control ensured consistency for comic book stores. Diamond was instrumental in establishing Free Comic Book Day, a widely celebrated event taking place annually in May. Furthermore, it functioned as a sort of financial institution for numerous retailers: When shops fell behind on their payments for new releases, Diamond would offer credit, allowing them to keep operating when they might otherwise have had to close down.
In the words of Benn Ray, who jointly owns Atomic Books in Hampden and previously worked with Diamond in the late 1990s, despite all their flaws and valid criticisms, one positive or significant impact they had on the industry was their role in promoting and evangelizing comic books.

To put it simply, if someone was determined enough, they could easily establish their own distribution company and provide retailers with alternatives to the current monopoly held by Diamond. However, for over 25 years, no one has shown any inclination to challenge this dominance, just as there were few attempts to alter the format of comics during the same period. Despite having the opportunity to switch from pamphlets containing only around 20 pages of story to longer paperback or hardcover books, many publishers continue to forgo this chance, often persisting on a path where they may not even be certain of their goals.

For quite some time, Geppi was not to be denied. Diamond held near-monopolistic rights to distribute almost every comic that fans desired intensely, providing retailers with a straightforward inventory system. Instead of managing multiple distribution companies, they had a convenient one-stop solution in Diamond, where they could procure goods from DC, Marvel, and various smaller publishers all under one roof.
In the ’90s, I found myself closely observing the comic book distribution sector amidst allegations of potential antitrust infractions. However, at the end of that era, it was clear that no action had been taken against Diamond, the key player in this industry.
The proprietors of local comic book stores underscored the significant impact that Diamond has had and praised the understanding it showed toward stores that struggled with late payments. It’s plausible to think that many fewer comic book stores might be operating today without Diamond’s presence.
In simpler terms, “Marc Nathan, a long-time customer of Diamond, stated that stores may have required some assistance, and indeed, Diamond stepped up to offer them help,” said Marc Nathan, who has been a client of Diamond since he opened Reisterstown’s Cards Comics & Collectibles in 1984. “Unlike other distributors, Diamond did.”

Why not attempt to create an alternative option instead of continuing with the current monopoly? If someone, disgruntled by recent inefficiencies, desired to do so, I believe they could develop a solution. However, this didn’t occur, and for many years we have been dealing with the consequences of this monopoly that has proven detrimental over time. It is essential to recall that during the past decade, at least dozens of specialty stores shut down because readers were abandoning the unappealing Marvel/DC offerings. If these products are not profitable, what value does Diamond provide in return?

Speaking as a movie buff, I recently came across an intriguing point of view shared by a manager from a local specialty store during an interview with The Seattle Times. This individual made a particularly thought-provoking statement on a topic we both share a passion for.

On January 14th, Diamond Comic Distributors applied for bankruptcy protection, causing uncertainty about its future as a major American comic book distributor. For the better part of the 21st century, Diamond has dominated the distribution market for monthly comic books in the U.S., with its reach extending beyond the hardcover graphic novels you see in modern bookstores to the older-style, stapled magazines that used to sit on drugstore spinner racks.

In essence, it seems like everyone’s making a big deal out of nothing here. We’re talking about a format that’s no longer cost-effective, and instead of discussing the switch to paperback, there’s an uproar over the loss of a distributor who primarily dealt with this outdated format. Bookstores dedicated to specific genres like science fiction and health topics have successfully managed their distribution needs. Therefore, comic specialty stores could handle book distributors just as well, ensuring delivery of paperbacks and hardcovers from specialists in that area. It’s surprising that this solution isn’t being proposed in any of these discussions, which only adds to the sadness of the situation.

If Diamond had filed for bankruptcy while maintaining its monopoly over comic book distribution within the USA, the existence of almost every comics store in the country could have been jeopardized. However, when Diamond temporarily halted operations during the initial stages of the pandemic, DC Comics and Marvel Comics – the two top monthly comic book publishers in the U.S. – ended their exclusive distribution agreement with Diamond, choosing instead to collaborate with two new distributors. Soon after, smaller comics publishers also started forming partnerships with these alternative distributors.
A significant number of shops in the Seattle area, which used to heavily depend on Diamond for delivering shipments of new comic books, action figures, graphic novels, and other geeky merchandise, have become diverse enough in their suppliers that Diamond’s bankruptcy had minimal effect on their weekly product releases.
Joel Bowyer, proprietor of Lynnwood’s Phantom Zone Comics, continues to feel a mix of sweet and sour sentiments towards Diamond’s predicament. “I believe every comic book store has a peculiar affection-antagonism with Diamond,” Bowyer remarks, swiftly qualifying, “there are certainly some that have an antagonistic-antagonism. However, despite its flaws, I believe it plays a crucial role in the comic industry,” he states.

However, let’s consider the value in storytelling and art. Without such value, it’s not surprising that Diamond has lost its significance. If their products fail to sell, neither can Diamond profit from their offerings. This report seems to indicate precisely that – their sales have dwindled.

For quite some time, numerous comic book stores were known for their exclusivity – they functioned like secretive enclaves meant exclusively for fans with extensive, specialized knowledge. When one imagines a comic book store, Bowyer suggests, it’s probably reminiscent of the store depicted in “The Big Bang Theory” – a cramped, difficult-to-navigate, uninviting place.
Phantom Zone Comics is intentionally crafted as a refreshing contrast to typical comic book stores. Instead, it offers an open, bright environment that encourages leisurely browsing. The merchandise, ranging from fresh comic book releases to an astonishing variety of He-Man action figures and captivating pop culture statues, are organized in separate showcases. This setup provides customers with the opportunity to appreciate each display at their own pace before moving forward.
At Phantom Zone, their six staff members are skilled in delivering exceptional customer service, a quality that hasn’t always been a strength of comic book stores. Bowyer remembers an incident from the past when he was a customer at a now-defunct local comic shop. “I would often be the only person in there, and the employee behind the counter wouldn’t even acknowledge me until I reached the cash register,” he recalls. To ensure a different experience, Phantom Zone employees warmly welcome customers upon entry and eagerly provide suggestions. As Bowyer puts it, “We prioritize our customers.
For Alderwood Mall visitors, who are often newcomers to comic shops, that attitude is beneficial. Bowyer notes that the store’s extensive children’s comic collection and the area dedicated to manga, featuring translated Japanese comics, have witnessed a surge in first-time customers.
At Phantom Zone, you’ll find numerous engaging displays designed as perfect starting points for newcomers browsing the store. One such display showcases an abundance of Deadpool and Wolverine graphic novels, ideal for fans who enjoyed last summer’s Marvel blockbuster movie.
To help novice readers navigate the extensive serialized manga collections (often spanning numerous volumes), Phantom Zone has set up a massive table filled with the initial volumes of popular manga series such as “One Piece,” the pirate adventure book that was recently transformed into a live-action show on Netflix, and “Cat + Gamer,” a heartwarming series about a new cat owner who applies lessons from her favorite video games to train her pet.

When I encounter comic book specialty store managers promoting stories about Wolverine and Deadpool that came out after 2000 without making clear distinctions, I can’t help but feel disappointed. While it’s true that some stores might have had a narrow, exclusive image, I personally don’t believe this was the case for all of them. It’s important to remember that not every store fit the stereotype portrayed in Neil Gaiman’s Sandman series. In fact, it’s quite likely that those self-proclaimed “nerds” who frequented these stores might have read that very issue, whether they found it ironic or not. It’s worth noting that being a nerd isn’t tied to any specific political ideology.

As an ’80s kid with a heart for cinema, I simply can’t contain my praise for Daniel Warren Johnson’s revamped “Transformers” comic. It breathes new life into the toys and stories of yore, transporting them seamlessly into the contemporary era. For me, Transformers have always held a special place, but this book has truly exceeded expectations – offering a refreshingly unique reimagining that’s captured my imagination like no other.
If you’re new to the world of superhero comics, Bowyer suggests starting with “one of my earliest reads – ‘Batman: A Death in the Family.'” This well-known tale from the 1980s, where the Joker kills Robin, Batman’s partner, remains a classic and continues to captivate young readers. The story appeals to them due to its intense elements of peril and drama.

Wow, it’s intriguing to ponder why a tale like this, in which Jason Todd suffered assault and was left to die in an explosion, is so well-liked. It seems the editors were upset by a prior story where Todd supposedly pushed a rapist off a building to his death. Was it the character’s fault or the writer’s? Marv Wolfman did a commendable job introducing 3rd Robin Tim Drake, and Chuck Dixon excelled in the subsequent series, but that doesn’t justify the questionable way Todd’s fate was handled. Perhaps the saving grace is that the 1988 storyline was self-contained, without ties to a larger crossover event.

Authors Ed Brubaker and Sean Phillips have been crafting noir comics as a team for quite some time. Bowyer is so keen on their work that he voraciously reads anything they publish, but he particularly suggests their “Reckless” series of detective thrillers and the more humorous “Where the Body Was.
Readers in the Phantom Zone find themselves drawn to James Tynion IV’s horror comic series, particularly “Something Is Killing the Children,” which bears a resemblance to the works of Stephen King. Similarly, Bowyer has expressed his affection for “The Department of Truth,” calling it one of his hidden favorite books over an extended period.

Individuals who frequently suggest content in a manner that seems to favor one story over another, like suggesting Batman’s tale instead of Superman’s, aren’t helping the already struggling medium improve. Some of this content appears biased, which is understandable given the city and newspaper’s known leftist leanings. It’s unfortunate if the readers at their stores truly enjoy such questionable content.

It’s plausible that some of the same foundational elements Diamond used to build their enterprise are still relevant today. This might be a key factor in considering their services even after they close shop.

2025-02-05 17:34

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