Disney And Webtoon Expand Their Digital Partnership In New Deal

Last month’s tantalizing announcement of a limited content deal between the Walt Disney Company and digital storytelling platform Webtoon turned out to just be the prelude to a much deeper partnership. Yesterday Disney and Webtoon announced the two companies will partner on a new digital comics platform that brings over 35,000 Marvel, Disney, 20^th Century and Lucasfilm Star Wars titles to market worldwide, along with an assortment of content from the Webtoon library. The nonbinding term sheet also gives Disney the opportunity to take a 2% equity stake in Webtoon, which was recently spun off from the South Korean tech giant Naver in an IPO in summer, 2024.

Webtoon (WBTN) shares were up sharply on the news, reaching a 52-week high. Disney (DIS) shares were off slightly in early trading on Tuesday.

“By uniting our unparalleled collection of comics across Marvel, Star Wars, Disney, Pixar and 20th Century Studios into a single digital platform, we’re giving fans unprecedented access to the adventures they love – all in one place,” said Josh D’Amaro, Chairman, Disney Experiences. “Through our expanded relationship with Webtoon, the global leader in digital comics, we’re opening doors to new audiences and deepening fan engagement.”

Disney currently makes Marvel and licensed comics available through various digital platforms including Amazon’s comiXology, DSTLRY and its own Marvel Unlimited app, as well as through the previous the Webtoon deal announced in August. According to yesterday’s announcement, the new platform will include a much wider selection from across the company’s different IP portfolios, presented in mix of vertical and traditional formats for archived comics, current comic book runs and original stories.

“With a new platform that will combine our product and technical expertise with Disney’s full comic catalog, we’re giving new and longtime fans all over the world a new way to discover these legendary characters and stories,” said Junkoo Kim, Founder and CEO, Webtoon Entertainment. “Disney’s extraordinary storytelling legacy is second to none, and we’re honored to work with them to build the future of digital comics. This is a powerful next step for our growing global business, and a strong foundation for even greater collaboration with Disney in the years ahead.”

As with the previous collaboration, this deal has strategic benefits for both companies. Webtoon is the world’s leading purveyor of the popular vertically-scrolling graphic stories favored by younger mobile-digital consumers. The company has also been instrumental in the global commercialization of South Korean IP, with many popular films, K-dramas K-pop bands and videogames crossing over or originating in the medium. According to the announcement, Webtoon will localize select Disney titles for the lucrative Japanese and Korean markets.

For Webtoon, last month’s initial Disney announcement followed a positive earnings report, bolstering the Webtoon stock that had sunk more than 60% following its IPO. This expanded deal signals a deeper relationship with one of the world’s most recognized and beloved entertainment companies, with IP that appeals to fans of all ages and demographics. Disney is also incentivizing its millions of Disney+ subscribers to further explore the stories behind some of their favorite franchises by checking out content in the new app at no additional charge.

There are still a few unanswered questions in the wake of the announcement.

• How much will the “mixed” format of the new app lean on Webtoon’s vertically-scrolling format, which is optimized for mobile browsing but requires reformatting of legacy content?
• How much of Webtoon’s own content will make it into the catalog, bringing over fans who enjoy the genres and storytelling style of webtoons who may not be familiar with traditional North American comics?
• Will the new combined app bring decades worth of Disney content produced under license in Europe and other geographies to audiences in North America, where it has rarely if ever been published?
• Will the new app implement some of Webtoon’s metrics and analytics that help the company decide which titles and creators to promote and which properties are ripe for further media development?
• How will the arrival of a new app impact the current state of play in digital comics, which typically comprises just a small fraction of total revenues for North American publishers?

Clearly the two companies see plenty of common ground in working together in the space, so if the initial partnership is successful, it seems likely that we will see additional announcements in the coming months.

“Today’s announcement is an exciting step forward in the evolution of digital comics,” said Yongsoo Kim, global head of Webtoon content and strategy. “Comics are truly for everyone, and we’re excited to help this incredible format stake its place in mainstream culture, helping more people discover the power of comic art and storytelling.”