Posted in: Comics, Comics Publishers, Current News, Titan | Tagged: diamond, forbidden planet

The 2024 Contract Between Titan & Diamond Comic Distributors, Revealed

The 2024 contract between Titan and Diamond Comic Distributors, revealed, including for Free Comic Book Day

Earlier today, Bleeding Cool looked at new legal papers being filed by Titan Comics, trying to clarify their relationship with Diamond Comic Distributors in the wake of Chapter 11 bankruptcy, claiming concern for themselves and comic book retailers, as the next round of solicits and orders are due. However, as part of the paperwork, we also get to see their January 2024 distribution agreement with Diamond. And this may be the first time such a contract has been made public in such a fashion. We learn the following obligations from Diamond to Titan, and really get to see how some of the sausage is made. Who decides which publisher gets a Diamond Previews cover or which product is assigned a Diamond Gem? Well, it is probably how you thought it might be. Mostly.

• Diamond is obliged to publish the Diamond Previews monthly catalogue, and will reserve up to 30 pages in the colour section per month for free, as well as one page in the "Manga" section for every 4 titles listed, and 1 page in the "Merchandise" section for every 2 products listed.
• Diamond will list at least two of Titan's products as Gems every month, and all new series launches as Featured Items in the Manga section.
• Titan Comics will get at least three covers to Previews a year and three Previews spine ads a year, four retailer/consumer order form covers a year, a minimum of one email blasts a week to retailers, two monthly banners on the diamond website and a monthly banner ad in Buyer's Daily e-newsletter.)
• Titan gets a Brand manager at Diamond to liaise with.
• Diamond will also display and promote selected Titan products at any show they exhibit at.
• Titan also gets to be part of Free Comic Book Day, and will get the Gold sponsorship level, which guarantees a presence in every participating store, but only pay the Silver level pricing.

Ooh, that last one is going to sting some other FCBD participants. But remember, this contract was signed in January 2024, after a spate of publishers had left Diamond and more were about to, which directly led to the distributors' bankruptcy. The contract states that the Distreal can be terminated if "Either Buyer or Seller files a petition in bankruptcy, is adjudicated a bankrupt" and that "seller will remove at its own expense all Products held on consignment ("Inventory") from Buyer's distribution center; unless Buyer has chosen to sell or remainder this Inventory to offset amounts due from Seller to Buyer." And "All Products are to be held by Buyer on consignment, and remain the property of Seller until sold by Seller through Buyer."

We also learn some standard distribution terms. For returnable items, payment can be held for up to 120 days from receipt of goods, and a processing fee of $100. Items received without a valid scannable bar code may be either returned to the Seller, or assessed a $150 processing fee, and an additional $.A 20 per piece fee will be stickered, may be delayed for three weeks and will be made returnable. The filing reveals that Diamond Comic Distributors had a 60% discount and that Titan get an extra 1% on what Diamond sells between two and three million dollars a year.

Any incentive items must ship within 30 days of the shipment of the qualifying items, of they'll all be returnable and the costs passed onto Titan. Late products are subject to a $150 late fee. And all items that are related to holidays or other media events must ship at least twenty-one days prior, or they will be cancelled or made returnable. One may be able to extrapolate that similar terms may be applicable to other publishers. Or maybe they got terms that were worse…

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