Following the news that Diamond Comic Distributors has filed for bankruptcy, the entire industry is on the brink of transformation. Following in the footsteps of some of the heroes he draws, DC Comics publisher Jim Lee made a bold decision in early 2020: he parted ways with Diamond. Although Lee faced criticism for what was considered an unthinkable move, few realized that this choice would lead to an industry reckoning.

For nearly three decades, Diamond has been the exclusive distributor of DC Comics, as well as the primary distributor for most other American mainstream and independent comic book publishers. Stepping away, in 2020, from the system that Diamond had built risked significant disruptions in how DC delivered its comic books to fans — especially during the pandemic, when comics were already facing pressure from more lockdown-friendly forms of entertainment.

Nevertheless, Lee believed that he had no choice. Now, a number of other comic publishers are following in his footsteps, breaking from Diamond in the wake of its bankruptcy in a massive wave that will likely change the shape of the industry forever.

The Comic Book Distribution System That Diamond Spawned

A Monopoly Rises and Falls, Changing the Shape of the Comics Industry

Comics, of course, are the lifeblood of the comic book industry. For over twenty-five years, Diamond was the king of comic distribution. Without Diamond, it was almost impossible for comic book publishers to get their product — comic books — to their fans. Years ago, publishers like DC and Marvel had thriving subscription services, sending comics directly to customers. However, over time, most of these in-company services were discontinued or limited. In their place, publishers began using specialized "middlemen" called distributors to send product to retailers (comic book shops) that offered customers a one-stop shop for all their comics.

Although American antitrust laws prohibit monopolies, Diamond was exempt because, as a middleman, it was challenging to prove harm to consumers.

The system proved highly effective. Publishers could outsource their distribution operations, freeing up resources to focus on their core strength: storytelling. Instead of managing thousands of fan subscriptions or hundreds of comic shop orders, they only needed to interact with a few distributors. Retailers benefited from streamlined ordering, unified and reliable delivery, marketing and promotional , and centralized ordering hubs. For consumers, the system ensured consistent and dependable access to a wide variety of desired products: comic books and graphic novels.

During the shift from subscription-based to distributor services, Diamond emerged as the most effective company. It wasn't long before nearly every comic book publisher – from industry giants like DC and Marvel to small, one-person operations – partnered with Diamond. Over time, Diamond's market dominance granted it near-monopoly power. Although American antitrust laws prohibit monopolies, Diamond was exempt because, as a middleman, it was challenging to prove harm to consumers. The law focused on publishers and retailers as the primary actors in the industry.

The Pandemic Sidelined Diamond, Changing Comic Distribution Forever

DC Comics Makes the First Move in a Years-Long Business Saga

Diamond quickly established itself as the dominant force in global comic book distribution, earning its reputation as the industry's undisputed leader. The comic book industry, in turn, aligned itself under Diamond's authority. However, like nearly every sector of life, the beginning of the COVID-19 pandemic in 2020 brought massive disruptions to the comic book distribution landscape. Diamond’s CEO, Steve Geppi, itted as much when, in a March 2020 Diamond press release, he announced that, due to the impact of COVID-19, Diamond would be indefinitely suspending the distribution of all comic books under its management.

A few weeks later, as reported by CBR, Diamond announced that it would be withholding payments to publishers due to cash flow issues caused by the closure of retail stores. While many understood the potential for distribution slowdowns resulting from the various government policies in place at the time, Diamond's decision revealed just how dependent publishers were on the company. Diamond had the power to make decisions that could drastically impact publishers' bottom lines. Furthermore, the announcement left publishers blindsided, with no alternate plan in place to deliver their products to consumers.

Faced with an indefinite delay in distributing their comics and other products, once Diamond resumed full service post-pandemic. However, DC's decision ultimately shattered Diamond's aura of distribution omnipotence. Contrary to conventional wisdom, DC proved that effective content distribution was possible without Diamond, offering publishers and retailers something they never had before – control.

Diamond's Bankruptcy Is Forcing the Comic Book Industry to Adapt to a New Reality

Anything Could Happen Next

By January 2025, Diamond's dominance had significantly diminished. DC's strategic move gradually persuaded other major publishers, including Marvel and Image, to leave Diamond or divert portions of their distribution to competitors like Lunar, Universal, and Simon & Schuster. Despite losing some of its largest clients, Diamond remained a significant force in comic distribution, particularly for smaller independent publishers. It also maintained its importance for retailers, who were accustomed to Diamond's advantages, such as economies of scale, discounts, convenience, timely , and promotional events like Free Comic Book Day.

So, while the comic industry had already begun to shift after DC’s decision to leave Diamond, the news on January 14th, 2025, that the distributor was filing for bankruptcy sent a shockwave throughout the comic book world. Despite DC demonstrating that there were alternative ways to ensure distribution, the sudden loss of Diamond — still the biggest mover in the business — generated massive uncertainty, at least in the short-to-medium term. Publishers, retailers, and creators who had not made backup plans have been left wondering how they are going to keep their products flowing.

Under bankruptcy rules, there is no guarantee that a creditor – especially lower priority ones – will be paid what they are owed.

Beyond distribution, Diamond's pending bankruptcy also risks triggering a series of bankruptcies and restructurings for publishers and retailers. These entities had paid money to Diamond, but the bankruptcy process might prevent them from recovering all or even any of those funds. As Publishers Weekly reported, some publishers have already been forced to lay off staff or seek alternative funding sources, such as crowdfunding campaigns.

Diamond's Downfall Will Hurt Some Comic Book Industry Players More Than Others

Smaller Publishers Are in Real Danger

However, perhaps the most significant consequence of Diamond’s bankruptcy for the comic book industry will be its impact on the most vulnerable players: small publishers and individual content creators. While these creators may not have the same distribution needs as industry giants like DC and Marvel, Diamond provided them with something invaluable: exposure. It offered them a platform to be seen nationwide and globally, an opportunity they may struggle to replicate with a new distributor. Indeed, as reported by CBR earlier this month, independent publisher Blood Moon Comics has already ceased operations.

A new distributor might not consider it cost-effective to include these smaller players in their catalogs. As a result, Diamond’s downfall could very well spell the end for many of these companies. Naturally, comics will eventually find their way to consumers. DC has already demonstrated that Diamond is not indispensable. However, for much of the industry — lacking the clout, finances, and resources of DC Comics — adapting to this “new world order” will come with significant and acute challenges. Even when distribution returns to normal, Diamond Comic Distributor's decline will leave a lasting impact on the comic book industry landscape.

Sources: Diamond Comic Distributors, CBR (1, 2), Publishers Weekly