Newspaper Editor Questions Syndicates' Online Comics Model

By: Dave Astor An Idaho editor sent a letter to King Features Syndicate saying the existence of King's DailyINK online service may mean King "places little value on syndication fees." And he wondered if the syndicate should start paying newspapers to run comics.

Dean Miller, executive editor of The Post Register in Idaho Falls, sent the letter to George Haeberlein, King's vice president, worldwide syndication sales. A copy of the letter was also e-mailed to E&P.

When Miller was subsequently contacted by E&P, he acknowledged that other syndicates also offer online services. Miller said he decided to "start with King" in expressing his opinion of the online comics model.

E&P also contacted King, whose editor in chief, Jay Kennedy, said the syndicate would respond to Miller directly. But King also issued this response to the letter for E&P: "It's worth pointing out that King Features Syndicate represents over 70 comic strips and panels. Many newspapers carry less than 10 of these comics. DailyINK is not a grand business model. It is a way of making our comics available to individuals who cannot get all the comics they want in their local newspaper."

The King statement added: "Experience has shown us that charging for access to comics online actually acts as a deterrent when people have the option of reading their comics" in newspapers.

In his letter, Miller wrote: "With DailyINK, King has gone around newspapers directly to newspaper customers, offering comics online in near-real time at a loss-leader price. Apparently King has decided that it can go it alone and no longer needs newspapers."

He continued: "I have to assume that your new business model places little value on syndication fees and envisions that the vast majority of your revenue will now come from your direct sales to readers and related merchandising and books.

"Under this new business model, the newspaper comics page has become an important opportunity for product placement. What should King pay for the opportunity to introduce tens of thousands of potential online customers to King's products 364 days per year? ... I'm no economist, but I have to assume it's worth at least what newspapers have paid King in the past, since King is obviously willing to give up newspaper syndication fees in pursuit of direct sales to readers."

Miller told E&P that he contacted King "as a partner. My letter was not meant to be threatening. I just wanted to get a serious discussion going. Maybe King will change my mind."

The Idaho editor noted that "newspapers over the years haven't been perfect clients from time to time," with some being "notoriously cheap" in what they pay for syndicated features. But Miller added that syndicates wouldn't have the opportunity to make their comics successful if they didn't have print newspapers running those comics.

Readers can also see comics for free on many syndicate, cartoonist, and newspaper Web sites. Does this also pose competition for print newspapers? Miller said The Post Register site offers very little content for free, so its print edition is not at a disadvantage.

According to DailyINK.com, the $15-a-year service (there's also a $3 handling charge) "provides exclusive access to a quality blend of nearly 100 comic strips, including classic comic strips, new hits, and vintage stars from yesteryear."