A week after Disney shelled out $4bn (£2.5bn) for the phenomenally
successful Marvel Entertainment stable, Warner Bros has announced a new division, DC Entertainment, to streamline adaptations of its own superhero properties.

Warner Bros Entertainment has long owned DC Comics, whose characters include Batman, Superman and Wonder Woman. Now the publisher will be subsumed into the conglomerate's film studio in order to streamline screen adaptations. Current DC titles in production or pre-production include space-themed superhero flick The Green Lantern, starring Ryan Reynolds, supernatural Wild West actioner Jonah Hex, with Josh Brolin, and Guy Ritchie's adaptation of alien biker comedy Lobo.

According to Variety, the timing of the move is coincidental, but the contrast between the fortunes of the two comic book empires is instructive. During the 80s, DC's franchises ruled the superhero roost while Marvel's properties were mired in creative and legalistic doldrums. In recent years, however, Marvel characters like Spider-Man, Iron Man and the Incredible Hulk have proved successful. Warner has enjoyed success with Christopher Nolan's Batman films, but has struggled to revive the Superman franchise or establish other brands.

Comic book adaptations are among the most potentially profitable for studios – The Dark Knight netted Warner more than $1bn at the box office and more in ancillaries – but face numerous challenges. The rights to characters and stories are often complicated and can lead to legal challenges before, during or even, as in the case of Watchmen, after production. And while pre-existing fans can be a tremendous boon to a production if they are impressed, their disapproval can spell disaster.

The new DC Entertainment division will be headed by Diane Nelson, who has experience shepherding the Harry Potter books to the screen and overseeing straight-to-DVD adaptations of DC properties.