In a series of announcement, more and more details have emerged about the most recent bout of changes at DC Entertainment. The first bit of news was that DC Entertainment is becoming a ‘bi-coastal’ company. This is not a huge surprise and has been long rumored. DC Publishing will remain in New York, while the digital and multi-media services will move to Los Angeles. (First Press release after jump) This latter move will most likely help leverage the close proximity of the Warner Bros. Entertainment unit.

The next bit of news came out that DC Entertainment would be closing the doors at both Wildstorm studios (founded by DC Co-Publisher Jim Lee and eventually bought by DC) and Zuda comics (DC’s first foray into the digital comics arena with original art and stories from undiscovered talent). There was a letter from the Co-Publishers about this move (available to read after the jump as the second press release). In the letter it is made to sound that Zuda and Wildstorm will end, but all characters and books will eventually be put under the DC banner and imprint. Wildstorm books will end, but the characters would likely either be integrated to the DC Universe over time. Zuda books will continue under the DC name. That was my interpretation, at least. Again, for the details, read the second press release after the jump.

As more news came out though, it was revealed that 50 of the 250 employees at DC Entertainment are going to be laid off.

“We seriously considered every scenario and looked at the operational, financial and people considerations,” Nelson said. “We think this is the best way to go.”

This was apparently the final move in the restructuring shake-up that started with Diane Nelson’s appointment to head DC Entertainment a year ago. Now that the organizational changes have been set in motion, the next priority for the team in charge is to focus on content. Once the Harry Potter franchise ends at the box office, Warner Bros. will be leaning heavily on DC intellectual properties as new content to push starting with Green Lantern.

DC ENTERTAINMENT ANNOUNCES
BI-COASTAL REALIGNMENT STRATEGY

MULTI-MEDIA AND DIGITAL BUSINESSES RELOCATE TO LOS ANGELES WHILE DC COMICS PUBLISHING TO REMAIN IN NEW YORK CITY

(September 21, 2010 – New York) DC Entertainment, as part of its ongoing strategy to integrate the DC Comics business, brand and characters into Warner Bros. Entertainment’s content and distribution operations, will relocate its business functions related to and supporting multi-media and digital content production to Burbank, California. DCE’s publishing operations will remain in New York, continuing DC Comics’ 75-plus year legacy of leadership in the comic book arena. These announcements were made today by Diane Nelson, President, DC Entertainment.

“These organizational changes reinforce the strengths of DC’s greatest legacies – most importantly its people and its creative talent – and offer greater opportunity for maximum growth, success and efficiency in the future,” said Nelson. “Our two offices will stretch and build their respective areas of focus, while prioritizing and aggressively striving to connect and cooperate more strongly than ever before between them and with their colleagues at Warner Bros.”

“This strategic business realignment allows us to fully integrate and expand the DC brand in feature films as well as across multiple distribution platforms of Warner Bros. and Time Warner,” said Jeff Robinov, President, Warner Bros. Pictures Group, to whom Nelson reports. “We are creating a seamless, cohesive unit that will bring even more great characters and content to consumers everywhere.”

The relocation process is scheduled to be completed by the end of 2011, with DCE’s businesses related to the development and production of feature films, television, digital media, video games and consumer products as well as the company’s administrative functions relocating to a Warner Bros.-managed property in Burbank, CA. DC Comics’ publishing operations, which have been the bedrock since the company’s inception with an annual output of over 1,100 comic books, 300 graphic novels and MAD magazine, will remain in New York. The bi-coastal business units will work more closely together to continue elevating the powerful DCE brand.

DC Entertainment was founded in September 2009 to fully realize the power and value of the DC Comics brand and characters across all media and platforms. The senior management team responsible for shepherding DCE through this reorganization is comprised of Nelson, Geoff Johns, Chief Creative Officer; John Rood, Executive Vice President, Sales, Marketing and Business Development; and Jim Lee and Dan DiDio, Co-Publishers of DC Comics.

LETTER FROM THE CO-PUBLISHERS

The changes happening behind the scenes this week are part of a greater campaign to reshape DC Comics and build a company for the future. Our responsibility as Co-Publishers is to find a balance between short term opportunities and long term vision; between our strengths in traditional print formats and the infinite potential beyond print; between our characters’ rich legacies in the past and the bright promise for the future they hold.

As we’ve said before, there’s much to celebrate about DC. The foundation for long-term success is already here.

The DC Universe features the modern adventures of the World’s Greatest Superheroes, as envisioned by an exciting mix of new and fan favorite comic book creators. Vertigo is committed to publishing cutting edge, creator owned comic books and graphic novels by a wide array of creative voices.

One of our first decisions of the Co-Publishers was to up the publication of MAD Magazine from a quarterly periodical to a bimonthly one. In the wake of that decision, the magazine has seen increased sell-through growth. And we’re thrilled that MAD’s brand of madcap humor now stretches across media, with a highly-rated television show on Cartoon Network. The Usual Gangs of Idiots are an important part of this company and pop culture.

As we move forward, we also have to acknowledge the need for change.

After taking the comics scene by storm nearly 20 years ago, the WildStorm Universe titles will end this December. In this soft marketplace, these characters need a break to regroup and redefine what made them once unique and cutting edge. While these will be the final issues published under the WildStorm imprint, it will not be the last we will see of many of these heroes. We, along with Geoff Johns, have a lot of exciting plans for these amazing characters, so stay tuned. Going forward, WildStorm’s licensed titles and kids comics will now be published under the DC banner.

After this week, we will cease to publish new material under the ZUDA banner. The material that was to have been published as part of ZUDA this year will now be published under the DC banner. The official closing of ZUDA ends one chapter of DC’s digital history, but we will continue to find new ways to innovate with digital, incorporating much of the experience and knowledge that ZUDA brought into DC.

We’ll be further expanding our digital initiative and making a lot more news in this space. As part of that transformation, the WildStorm editorial team will undergo a restructuring and be folded into the overall DC Comics Digital team, based in Burbank, which will be led by Jim Lee and John Rood. With nearly two million free downloads and hundreds of thousands of paid downloads, our digital foray is already reaching a new audience worldwide. We could not be more excited by the successful launch of our Digital Publishing products in June, which exceeded all sales forecasts and will be building on our early success with new applications for DC material on all major formats and hardware, partnering with Warner Bros Digital Distribution. It has extremely been rewarding to hear anecdotal stories of lapsed readers returning to the art form and of brick and mortar stores gaining new customers who sampled digital comics.

We remain, as ever, dedicated to working with the greatest creators this industry has to offer, while inspiring generations of creators and readers to embrace this medium that we all love.

Jim Lee and Dan DiDio
DC Comics Co-Publishers

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