Using a formula that company president Mike Pellerito sums up as "really sexy girls and really funny guys," the venerable comics publisher Archie Comics has been chronicling the exploits of perpetual teenagers Archie, Betty, Veronica, Jughead, Big Moose, and the rest of their Riverdale High friends since 1941. But with new story lines, an emphasis on graphic novels and digital delivery, a distribution deal with Random House, and more diversity in the characters, things are definitely changing in Riverdale.

Actually, the rather quiet revolution in Archie Comics is taking place for real in Mamaroneck, N.Y., where the company is headquartered, with editors over the past few years stretching the boundaries of tradition without breaking continuity with the past. In the last two years, the company has made news with its parallel story lines, Archie Marries Veronica and Archie Marries Betty (now continuing in its Life With Archie magazine); the introduction of Kevin Keller, Riverdale's first openly gay character; and its recent announcement that it would publish all its comics digitally on the same day they are released in print.

Originally named MLJ Magazines, Archie Comics was founded in 1939, and its initial lineup included a mix of science fiction, superhero, and crime stories. Archie Andrews made his first appearance in 1941 and was loosely modeled on Mickey Rooney's teenage Andy Hardy character, the star of a series of successful movies. Betty and Jughead also appeared in that first comic; Veronica did not appear until a year later.

The heart of the Archie line is its six 32-page comics, Archie, Archie & Friends, Betty, Betty & Veronica, Jughead, and Veronica. These comics, along with older stories, are then reprinted in small digests, and the stories are also collected in larger-format graphic novels based on story arcs or common themes. A second magazine, Betty or Veronica?, is in the works, and the magazine stories will also be collected as graphic novels. In 2010, the company increased the frequency of its double digests and discontinued the smaller single digests. "We found that with single digests we weren't giving enough value to readers," says co-CEO Jon Goldwater. "By printing more double digests at a better price point, we are giving better value."

The Riverdale characters have become more diverse over time and now reflect a more contemporary sensibility. In addition to a broader ethnic mix, the cast has shown a greater range of interests and problems. Big Moose, for instance, once depicted as dumb and aggressive, turns out to have dyslexia. Kevin Keller is an integral part of the cast and will star in his own series later this year. Goldwater says these changes are both a natural evolution and part of a deliberate effort. "It's a natural evolution because that is what the world is," he says. " It is a deliberate editorial push because we are reflecting what is going on in the real world." That reflection includes topical issues such as a Jersey Shore parody, a Twilight parody, and guest appearances by President Obama and Sarah Palin.

One reason why Archie comics remain so popular with children is that they are among the few comics still available on the newsstand and at supermarket checkouts; indeed, the newsstand represents "the lion's share" of comics sales for the company, according to Goldwater.

In September, the company signed a distribution deal with Random House, which Goldwater says has spurred a renewed emphasis on graphic novels. The monthly comics are not going away, but Goldwater says he wants to increase the company's graphic novel line by 50%–100%. "It is a very, very important part of our business here at Archie Comics, and we are focusing a lot of energy and resources behind promotion and creation of our graphic novels," he says. Last week, the company announced its first original graphic novel, Archie Babies.

Goldwater is also looking to expand the company's presence in comics specialty shops (known in the business as the direct market), where its presence has never been that strong. "Right now that is extraordinarily important to this company to do that," he says. "We are changing the way we do business. We are working right now with the stores and Diamond [Comics Distributors]."

There is more to Archie Comics than Archie. In addition to its flagship characters, the company publishes a line of Sonic the Hedgehog comics and graphic novels based on the Sega game character, and a Mega Man comic based on the Capcomm game debuting in April. Legendary comics writer Stan Lee, the creator of Spider-Man, is developing a new comic called The Mighty Seven, which Archie will publish. In October, the company announced it would be publishing a series of Sam Hill graphic novels, starring a hard-boiled detective featured in a short run of comics from 1950 and 1951. Also being revived is Cosmo the Merry Martian, an older character, for stand-alone stories, possibly digital only. "We are dipping into our vast library of characters," Goldwater says. In addition, new digital and print comics based on Sabrina the Teenage Witch, Josie and the Pussycats, and Riverdale genius Dilton Doiley, among others, are in the works.

The pace of change has picked up since Goldwater came on board 19 months ago. Although he is the son of John Goldwater, one of the three founders of Archie Comics, Jon Goldwater came to the company with a background in music and entertainment—he was a partner at Japanese concert promoter Zak Concerts and is a former president of AFA Music Group—not comics, and his thinking has shaped the company's digital strategy. "The music business rebelled against the digital technology, and look what happened," he says. "Lesson learned. Here at Archie Comics, we are going to be the leaders." While other comics publishers have done simultaneous digital and print releases for selected titles, Archie is the first to make that commitment with its entire line of single-issue comics. Plans are also in the works for some digital-only comics.

Although the digital comics will be priced at $1.99, a dollar less than their print counterparts, Goldwater is not worried about losing print sales. "We noticed that on the few occasions when we did go day and date [digital and print delivery] it had no impact whatsoever on our print sales. I really look at it as two different markets. I think one supports the other. And then there is the rare wonderful fan who wants the print and the digital [version]."

Goldwater says a lower price point for digital comics is the way to go. "When I buy something, I want to feel I have fair value. But digital is digital, it's not the same product." He adds, "Digital is another revenue stream for this company, and today we have to be aware of how many revenue streams we can generate. Digital at the moment is not significant, but hopefully one day it will be."

Archie Comics recently opened an office in India, and Goldwater hopes to expand foreign sales. "The great thing about Archie and our brand is that we are 100% family friendly, so we are available and accessible to everybody," he says, adding, "Even though we are big in India, we should be bigger. We are big in Australia, but we should be bigger. We are not big in Europe, but we will be."

Goldwater is just beginning to pursue marketing deals with other media. "For the first 19 or 20 months, I wanted to get to the bottom of our publishing business. I feel strongly we are going to be competing with Marvel and DC every step down the line. Now I am going to California, and we are going to be discussing film, TV, animation—everything—going forward

"We are looking to expand as this company has never expanded before."