This article was originally published on Comics Beat.
You’ll seen be able to read vertical scrolling comics featuring Spider-Man, Aliens, Star Wars and beloved Disney characters right in the Webtoon app. As announced today by both Disney and WEBTOON, the two corporate giants have entered into a strategic partnership to bring comics from the Disney, Marvel, 20th Century Studios, and Star Wars brands to WEBTOON’s mobile vertical-scroll format globally.
Even more titanic: brand-new original webcomic series are coming. WEBTOON is developing original comics in all these brands. According to the pr, “These original webcomic series will introduce new adventures for beloved characters, from superhero epics to galaxy-spanning adventures, giving fans more of what they love, delivered directly to their mobile devices.”
Our prediction of a vertical scrolling future for serialized comics just got one step closer.
The initial deal calls for about 100 comics to be available, in a new dedicated section of the English-language app. Readers can enjoy free episodes at the start, but as with most WEBTOONS, pay-to-read will kick in eventually. Launch titles include:
- Amazing Spider-Man (2022-present)
- Avengers (2012)
- Star Wars (2015)
- Alien (2021)
- Disney As Old As Time: A Twisted Tale
“The Disney, Marvel, 20th Century, and Star Wars brands are among the most legendary, creative, and successful in the industry,” said Yongsoo Kim, Chief Strategy Officer and Head of Global WEBTOON in a statement. “We’re thrilled to kick off this collaboration with iconic series from their comic book catalog – and this is just the start! Together, we’re bringing this legendary storytelling to a new generation of mobile-native comic fans, while giving existing fans a new way to experience series and characters they love.”
“Our collaboration with WEBTOON will allow us to expand our beloved franchise universes on a best-in-class digital platform,” said Daniel Fink, SVP, Head of Digital Innovation, Disney Consumer Products. “We look forward to engaging with their dedicated, global user base while welcoming future fans to experience a redefined form of Disney storytelling that will have a lasting impact in the digital comics space.”
Rob Salkowitz has more details and analysis at Forbes, to highlight why this is a pretty big deal:
Earlier this summer, ahead of the Disney partnership announcement, Kim was even more straightforward about Webtoon’s ultimate vision for the industry. “The vertical scroll format revolutionized digital comics,” he wrote in a ‘prediction’ for the future of digital comics. “Now that same innovation is being applied to traditional comics as publishers digitize and reformat their catalogues for digital distribution. Hard-to-find issues and content will be a thing of the past, as the entire history of comics is digitized. This will open up a new revenue stream to publishers’ back catalogues and – even more exciting – introduce a younger, mobile-first audience to the incredible art and storytelling that have defined comics for generations.”
Both companies appear open to experimentation to grow the market. Webtoon has collaborated with Marvel in the past on projects like The Eternals: The 500-Year Warand a series of webtoon adaptations in South Korea. The company has also partnered with DC Comics, Dark Horse, Archie, IDW and others on various series, including the popular Wayne Family Adventures (DC). Marvel recently announced a digital distribution deal with DSTLRY, a startup founded by Amazon ComiXology veterans, operating on a different revenue model from Webtoon.
Another big deal: Webtoon announced its 2Q earnings and they soared 28%, surprising analysts after several quarters of sluggish results following their splashy IPO last year.
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Total revenue of $348.3 million increased 8.5%, driven by growth in Paid Content, Advertising and IP Adaptations.
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Revenue on a constant currency basis was $338.7 million, up 5.5%, driven by growth in all three revenue streams.
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Net Loss was $3.9 million, compared to Net Loss of $76.6 million in the prior year, due to lower general & administrative expenses associated with the Company’s initial public offering which took place in the prior year quarter.
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Adjusted EBITDA was $9.7 million, compared to Adjusted EBITDA of $20.4 million in the prior year. Adjusted EBITDA margin was 2.8%, compared to 6.3% in the prior year.
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Diluted loss per share was $0.03, compared to diluted loss per share of $0.70 in the prior year.
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Adjusted earnings per share was $0.07, compared to Adjusted earnings per share of $0.18 in the prior year.
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Cash and cash equivalents of approximately $581.5 million plus another $12.1 million of short-term deposits included in Other current assets.
WEBTOON stock was up sharply following news of the Disney partnership. In forward looking remarks, they projected continued profits, with revenue between $380-$390 million for the next quarter.
