Here's what he had to say, when asked during a Q&A session whether he had considered doing an online version of Clerks III.
"Back when I was trying to figure out how to do Clerks III, I was trying to figure out ways to re-create it and make it interesting, rather than just simply doing a movie. At one point, we were considering doing it on Broadway. I was like, 'We could do a limited six-month run!' Somebody was like, 'If you do a six-month Broadway run, you will never make money, in fact, you'll lose people money.' I didn't know that. That went away. One of the things I talked about was doing it episodically online, which would be kind of fun for me. It would get away from me doing it with a studio. I haven't talked about this yet, but I want to do Clerks III as a book first. I want to do episodic chapters, so as I release it, people can read the whole thing, see what it would look like. I get to go inside the characters' heads. I get to tell year one origin stories. The first chapter is Dante and Randall meeting in kindergarten, all the stuff I can't do in a movie."
He also spoke about getting the audience involved by releasing it as a book.
"If I'm doing it in pieces, the audience is going to influence it. My entire career has been about audience interactivity. For me to write it episodically, and have them read it chapter by chapter and then pipe in, it could actually allow me to change direction."
As far as the actual movie is concerned, he wouldn't confirm that the book is completely replacing the film version of Clerks III. Take a look at the full video with Kevin Smith, with the Clerks III talk starting at the 13-minute mark.