To clarify the term, and its predecessor the Penny Blood, we have to go back to the first quarter of the 19th century. The popular form of literature in England then was the Gothic novel. The setting and plot to this type of fiction generally included castles, dungeons, hideous hags, plus a hero, heroine and villain. The problem here was that these books cost much more than any average worker could afford and, apart from this, only a small percentage of the working classes could read. A combination of events changed this situation and put popular literature into the hands of the common man.
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The first publisher to successfully gauge the public’s growing fascination with sensational reading material was Edward Lloyd... Lloyd is credited with coining the term penny blood as his sensational publications invariably contained gory scenes.
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The launch of the storypaper The Boys of England in 1866 by Edwin J. Brett was the beginning of the end for the penny blood. Brett saw that adult readers had moved on to more ‘refined’ fiction in journals and newspapers. He aimed his new paper specifically at the juvenile market and used schoolboys as heroes in his stories....
The success of Brett’s Boys of England led the way for a host of imitators all very similar in format. A critic at the time is credited with coining the term ‘penny dreadful’, which was used to describe this new breed of children’s literature. The label is unfair. The fiction in these publications was, by and large, of a high standard with exciting, well-written adventure stories. Far from glamorising villains and criminal behaviour these new storypapers condemned vice and promoted virtue.