If I understand this correctly, Diamond is creating a mechanism for consumers to buy digital downloadable comics by going into their LCS and buying a code.

I've worked in a traditional media company that has had their business disrupted in a massive way by digital forms of media. Diamond's way of going about this seems backwards. It's almost as if Diamond sees an avalanche coming down a mountain, so in an effort to control it they build a chain link fence.

So many people talking about how excited they are about legal digital downloads - until they see their piece of the pie whittling away because of it.

I don't see it that way. Though, perhaps that may because I look at the results rather than the method.  A car is a transportation evolution from the horse. Both can get riders to the same destination. More people came to accept the automobile as transportation because of its effectiveness.

In terms of comics, paper is becoming outdated. It is harder to find the paper product. They take up space. They are overpriced. We live in a society that desires to go green and save more trees. Digital, as a method, can get us the same art and the same story in a more effective manner much like the car can be more effective to get us to our destination.

Not yet. But the same can be said for any technology as you mention for iPads. The price is cheaper than a laptop at this point.  My wife and I have even had the discussion as to getting our 9 year old a netbook, laptop, or iPad as he is nearing that stage where he will need more of his own access for school. (We probably still have a year or so to decide.) But, with comparable pricepoints, tablet PCs are definitely in the running and an Android market will make it more competitive.

As far as purchasing power, well kids can be resourceful.  Mine loves to play Club Penguin on the computer with his time. But, it does require a monthly subscription. I told him he couldn't have my credit card number no matter how he offered to pay me back. Well, he has discovered he could zip up to Drug Town on the corner and buy a Club Penguin access card with his own money.  They also sell iTunes cards there and many others. Purchasing power won't be a problem.

Finally, I guess you ned to define kids to be targetted. With my store I worked a bunch of years ago, our largest demographic was 15 to 25. I started buying comics when I was 11. I have other friends who were in high school wen they found them. Perhaps the comic buying demographic is the audience that can afford to spend $2.99 to $3.99 multiplied for each comic they want and then repeat on a monthly basis. If that is the demographic you are starting with, then they will probably be able to afford a digital medium if they don't already have one.

The difference I see is that they have decided they are selling content first, format second. Just my opinion.

I have a few reasons for thinking this way, all of them based on the idea
that Warner and Disney (if not some of their more fanboyish employees)
see some benefit in getting out from under the yoke of the direct market.
Digital is the end run they've been looking for -- the money goes to
them, there are no returns... all it takes is as wide an audience as possible.

So... digital content needs to be all-ages because:

1. Tablets are family devices. They're very often shared -- much more so
than a desk-bound computer. Your digital collection is there for all to
see, and much of the time, the last thing you were looking at is the first
thing the next person sees. It strikes me that objectionable content is
more likely to be noticed by parents on a tablet, so if I were trying to
reach a broader market, I'd chill out on the ultra-violence etc. Even if the
one buying the comics is a teen (or a grownup), it's MUCH more likely that
a kid is going to also have access to that content.

I imagine this will cause great outrage among those who will say that it
will destroy the long tradition of sneaking into your older sibling's room
and looking at their stuff.

2. A lot of tablets will be provided to school kids. That's one answer to
"how will kids afford to have tablets?" And while allowing kids to read
comics on an iPad is iffy, it's absolutely impossible to imagine schools
allowing comics rated "Teen and Up" or whatever. Parental controls alone
won't allow it. When you're not all-ages, you kill a large percentage of
tablet users.

3. Nine year olds don't pirate in anywhere near the numbers that older
teens do. I'm not saying that All-Ages means young kids exclusively, but
when you INCLUDE them in your market, you have a pool of people who
either aren't yet into pirating, or who need their parents to download
content for them (tablet downloads are password protected.) Obviously,
this isn't a 100% solution, but it seems to me that when you're trying to
broaden your paying audience, you'd want to be able to include a "safer"
group like supervised kids.

Does this make sense to anyone?

Edited by Sean Blythe on 10 February 2011 at 1:41pm

I won't dive into the kids and tablets discussion too much, mainly because I have a passion for it as a parent and a graphic designer and I would babble for too much :-)

I think some of the publishers are slowly realizing that digital means they can almost go straight to the consumer if they wanted. I'm wondering how much pressure a Diamond might put on some publishers to go with their digital model or risk their print distribution suffering.