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Tokyopop Splits in Two

Mochi — Mon, 23 Jun 2008 12:29:30 +0000

In early June, Tokyopop announced that they would be restructuring their company. Publishing operations would still be handled by Tokyopop, Inc. However, a new company called Tokyopop Media LLC would be created. This company will take over the comics-to-film and digital units (including the Tokyopop.com website).

The “new” Tokyopop Inc. will be leaner than its predecessor.John Parker, Tokyopop Group President and COO, will take over as Publisher of Tokyopop Inc. and Marco Pavia, formerly the Director of Marketing will be the new Associate Publisher. The former Publisher of Tokyopop Inc., Mike Kiley, will move over to Tokyopop Media in a key senior (though as yet unnamed) position.

The “new” Tokyopop Inc. will be leaner than its predecessor. 39 positions, or about 35% – 40% of the US staff, have been cut. While all departments were affected, Mike Kiley said in an ICv2 (pop culture trade news/information site) interview:

I can tell you that the reduction in force was mainly a function of right-sizing our release schedule, that those people that were closest to the actual production of physical books were more heavily impacted than in more general support categories.

As the above statement implies, the number of releases have also been reduced. The output will now be around 200-225 titles per year, or roughly 50% of the original plan of releasing 500 titles per year.

Information about specific titles has started to become available. Lianne Sentar (freelance rewriter and editor) wrote in her blog that the series she has been working on (Fruits Basket, Saiyuki, Tactics, and Rave Master) have not been canceled. But, she also said that the news was bittersweet since most of the staff editors she worked with have been laid off.

Diamond Comic Distributors Cancels Orders

Diamond Comic Distributors have canceled the July solicitations of over 20 volumes. The list of titles may be found here.

World Manga Impacts

In the area of World Manga (manga produced outside of Japan), Graphic Novelist Rivkah has reported on her blog, that the third and final volume of her Steady Beat series will only be available on the web. There will not, at least for the foreseeable future, be a print version. She also writes that many of Tokyopop’s books will be web-only.

She does mention that she has concerns about how royalties will be calculated for web content. Bettina Marie Kurkoski has bad news. She wrote in her blog that My Cat Loki, Vol. 3 will not be released in web or print form.

Two other World Manga authors have good news. Christy Lijewski says her Re: Play, Vol. 3 will be released in print form. Likewise, Rikki Simons says that Shutterbox, Vol. 6 will be printed.

Why the sudden reduction? In another ICv2 interview, Tokyopop CEO, Stuart Levy said:

The time is now for us to focus our publishing business to overcome current market challenges. Few(er) releases will allow for less cannibalization at retail.

Some of these challenges were mentioned in an ICv2 report released in April. This was presented at their annual Graphic Novel Conference at New York Comic Con…specifically:

Manga sales, including both comics and periodicals, were
about 5% to $210 million in 2007, up from $200 million in 2006. This was the lowest growth rate for manga since ICv2 began tracking sales.

Overall Bookstore Sales

Sales through bookstores were up by a mid-single digit rate, but direct market sales declined 5-10%. The decline in direct sales of manga was due to a reduced emphasis on the category by comic stores, a significant percentage of whom reduced their manga floor space in response to the growing number of releases and the increased difficulty in choosing between them.

Over-all, top manga titles continue to do well, but titles in the lower ranks of releases are having difficulty finding breathing room.

Another factor in the slowing manga growth rate may have been increased competition from publishers of American graphic novel material for space in stores.

Manga Sales Drop In Japan

In Japan, manga sales have been declining for the past 5-6 years. According to a 2007 report from the Tokyo-based Research Institute for Publications (via USA Today), the reasons for the decline are the shrinking pool of potential readers due to falling birthrates, dissatisfaction with the quality of current manga (lack of originality and variety), the print media as a whole has a decline in readership, and the increasing popularity of using the electronic media (cellphones and PCs) as a way of getting manga.

Perhaps the latter influenced Tokyopop’s decision to split their print and digital arms into separate companies…allowing them to position themselves as a leading force in the new medium. Mike Kiley of Tokyopop Media explained the reorganization this way:

I think the most immediate and practical answer is that we wanted to set things up in ways that would very clearly and definitively allow those businesses (Tokyopop Inc. and Tokyopop Media) to focus on what they need to do to succeed. The goals in each company are different and the achievement of those goals is more realistic, more possible if everyone working in each of those companies is very clearly focused.

Tokyopop Japan Updates

On a side note, according to ICv2, Tokyopop’s Japan operation will also be splitting into two. One will be under Tokyopop Media and the other will be under the Tokyopop Group’s holding company. The European operations will be unaffected…at least structurally. After the US division announced their release reductions, Tokyopop UK is planning on cutting their releases by about 20%.