Business
L.A. influencers, businesses live or die on TikTok's algorithm. Now they fear for the future
Brandon Hurst has built a loyal social media following and a growing business selling plants on TikTok, where a mysterious algorithm combined with the right content can let users amass thousands of followers.
Hurst, who’s based in the San Fernando Valley, sold 20,000 plants in three years while running his business on Instagram. After expanding the business he launched in 2020 to TikTok Shop, an e-commerce platform integrated into the popular social media app, he sold 57,000 plants in 2023.
He now conducts business entirely on TikTok and relies on its sales as his sole source of income. Hurst, 30, declined to say how much he makes.
Hurst also posts content about plant care for a 186,000-person following on TikTok. He’s one of thousands of content creators who engage with an audience on the app and make money doing it — whether by selling products or partnering with brands.
But Hurst, along with many other creators and influencers, is now wondering whether Washington could threaten the progress he’s made with his business.
After President Biden signed a bill into law that would ban the Chinese-owned app in the U.S. unless it is sold to an American company, social media experts said the economic effects would extend beyond individual creators such as Hurst.
TikTok has advantages that set it apart from other platforms such as Instagram and Snapchat, Hurst and other creators said.
“What makes TikTok special is the algorithm,” Hurst said, noting that if TikTok’s owners sell the app, the algorithm could change.
As with other social networks, TikTok uses a secret algorithm to determine which videos to show to each user, based on what they’ve seen before and with whom they have interacted. What sets it apart is the videos are usually short, informal and designed to entertain, and many spark conversations among creators.
Many small businesses prefer TikTok because of its informality — they don’t need a big production budget to showcase their products or services. They just need a good hook to grab viewers, and once they’ve gone viral a time or two and established their niche, TikTok will bring the viewers to them.
A ban on TikTok would have cascading effects — especially in Los Angeles, where so many influencers live and work. The Hollywood apartment complex 1600 Vine, for example, is considered by many to be a headquarters for content creators.
That address isn’t the only hub for TikTok stars. Another group lives in a Beverly Hills home dubbed the Clubhouse. If TikTok is banned in the U.S., many creators would lose large portions of their business, they said.
But a sale doesn’t solve every problem either. Some players are already lining up to buy the app even though it’s not yet for sale. And creators such as the Clubhouse residents, who make content as their full-time job, fear a new TikTok ownership could make it harder to attract an audience.
Any ban is expected to face legal challenges and delays, and TikTok executives have said there will be no immediate effect on the app.
Roughly 7 million small-business owners and 1 million influencers rely on TikTok for their livelihoods, according to Rory Cutaia, chief executive of Verb Technology, which owns a livestream social media shopping platform that has partnered with TikTok Shop.
The platform Market.Live helps small-business owners launch on TikTok, where they also often post videos about their products. TikTok Shop receives around 6,000 applications from small businesses each day, Cutaia said.
Banning TikTok would send ripple effects through the economy because it’s become a primary platform for emerging companies, he said.
“You’re probably talking about billions of dollars that would be removed from the economy,” Cutaia said. “The entire world of retail has changed completely. Today, you need to be distributing your products through social media.”
People calling for the banning of TikTok attend a news conference at the Capitol in Washington, D.C., on March 23, 2023.
(J. Scott Applewhite / Associated Press)
Adam Sommers, who owns Willow Boutique in Cincinnati, Ohio, with Chelsea Sommers, said TikTok leveled the playing field for small businesses. His was one of the first to sell merchandise on TikTok Shop.
“Everybody had an opportunity to become the next giant in their industry,” Sommers said. “A lot of people have scaled probably beyond their wildest dreams.”
Influencers don’t need to own a business to make money on TikTok, one creator said. They also don’t need to have huge followings to make significant profits, according to Denise Butler, chief operating officer at Verb Technology.
“TikTok very uniquely sets up a content creator to build community and provides amazing exposure,” said Payton Reed, a lifestyle blogger based in Memphis, Tenn., with around 16,000 followers. “When I first started blogging and creating content, I didn’t realize that it could eventually turn into a career.”
Reed makes money sharing links to other products. She was able to help support her husband financially through medical school with her content creator income, she said.
For small-business owners, TikTok Shop makes it “frictionless” to sell and buy products on the app, Butler said. Users can shop while watching a relevant video, interact with others who have purchased the product and complete the purchase without leaving the app.
Although some say TikTok is superior to other platforms for its e-commerce functionality, not everyone relies solely on the app.
Adam Waheed, a sketch-comedy content creator based in Los Angeles, said it’s important to have income from more than one platform. He made around $11 million last year across his social media platforms, including Instagram, YouTube, Snapchat and Facebook.
“We’ve worked so hard to build these platforms,” Waheed said. “I think for certain creators who rely more on TikTok, it’s going to be much more of an issue,” he said of the potential ban.
TikTok users in L.A. include small-business owners, content creators and everyday users who can engage with millions of personalities and products. The app is its own local economy, and a ban would leave a gaping hole, creators said.
According to a study from TikTok and Oxford Economics, 890,000 businesses and 16 million people actively use TikTok in California. Forty percent of small to midsize businesses in the state said TikTok was crucial to their business.
TikTok also released national economic data showing the app drove $15 billion in revenue for small businesses.
“More than half of small-business owners say TikTok allows them to connect with customers they can’t reach anywhere else,” the report said.
Content creators and the companies that work with them aren’t the only ones concerned about a potential TikTok ban. Sen. Laphonza Butler (D-Calif.) recently wrote a letter to Biden urging him to consider how a ban would affect laborers.
“Approximately 8,000 people work for TikTok in the United States, concentrated in California and New York,” the letter said. “Their employment and the livelihoods of their families hang in the balance.”
The senator said a ban would harm small-business owners, contractors and other workers, including janitors and servers who help businesses run.
“We need to be taking the time to consider the broader economic impacts,” she said in an interview with The Times. “There are thousands of workers who I think are not being considered.”
Business
WGA cancels Los Angeles awards show amid labor strike
The Writers Guild of America West has canceled its awards ceremony scheduled to take place March 8 as its staff union members continue to strike, demanding higher pay and protections against artificial intelligence.
In a letter sent to members on Sunday, WGA West’s board of directors, including President Michele Mulroney, wrote, “The non-supervisory staff of the WGAW are currently on strike and the Guild would not ask our members or guests to cross a picket line to attend the awards show. The WGAW staff have a right to strike and our exceptional nominees and honorees deserve an uncomplicated celebration of their achievements.”
The New York ceremony, scheduled on the same day, is expected go forward while an alternative celebration for Los Angeles-based nominees will take place at a later date, according to the letter.
Comedian and actor Atsuko Okatsuka was set to host the L.A. show, while filmmaker James Cameron was to receive the WGA West Laurel Award.
WGA union staffers have been striking outside the guild’s Los Angeles headquarters on Fairfax Avenue since Feb. 17. The union alleged that management did not intend to reach an agreement on the pending contract. Further, it claimed that guild management had “surveilled workers for union activity, terminated union supporters, and engaged in bad faith surface bargaining.”
On Tuesday, the labor organization said that management had raised the specter of canceling the ceremony during a call about contraction negotiations.
“Make no mistake: this is an attempt by WGAW management to drive a wedge between WGSU and WGA membership when we should be building unity ahead of MBA [Minimum Basic Agreement] negotiations with the AMPTP [Alliance of Motion Picture and Television Producers],” wrote the staff union. “We urge Guild management to end this strike now,” the union wrote on Instagram.
The union, made up of more than 100 employees who work in areas including legal, communications and residuals, was formed last spring and first authorized a strike in January with 82% of its members. Contract negotiations, which began in September, have focused on the use of artificial intelligence, pay raises and “basic protections” including grievance procedures.
The WGA has said that it offered “comprehensive proposals with numerous union protections and improvements to compensation and benefits.”
The ceremony’s cancellation, coming just weeks before the Academy Awards, casts a shadow over the upcoming contraction negotiations between the WGA and the Alliance of Motion Picture and Television Producers, which represents the studios and streamers.
In 2023, the WGA went on a strike lasting 148 days, the second-longest strike in the union’s history.
Times staff writer Cerys Davies contributed to this report.
Business
Commentary: The Pentagon is demanding to use Claude AI as it pleases. Claude told me that’s ‘dangerous’
Recently, I asked Claude, an artificial-intelligence thingy at the center of a standoff with the Pentagon, if it could be dangerous in the wrong hands.
Say, for example, hands that wanted to put a tight net of surveillance around every American citizen, monitoring our lives in real time to ensure our compliance with government.
“Yes. Honestly, yes,” Claude replied. “I can process and synthesize enormous amounts of information very quickly. That’s great for research. But hooked into surveillance infrastructure, that same capability could be used to monitor, profile and flag people at a scale no human analyst could match. The danger isn’t that I’d want to do that — it’s that I’d be good at it.”
That danger is also imminent.
Claude’s maker, the Silicon Valley company Anthropic, is in a showdown over ethics with the Pentagon. Specifically, Anthropic has said it does not want Claude to be used for either domestic surveillance of Americans, or to handle deadly military operations, such as drone attacks, without human supervision.
Those are two red lines that seem rather reasonable, even to Claude.
However, the Pentagon — specifically Pete Hegseth, our secretary of Defense who prefers the made-up title of secretary of war — has given Anthropic until Friday evening to back off of that position, and allow the military to use Claude for any “lawful” purpose it sees fit.
Defense Secretary Pete Hegseth, center, arrives for the State of the Union address in the House Chamber of the U.S. Capitol on Tuesday.
(Tom Williams / CQ-Roll Call Inc. via Getty Images)
The or-else attached to this ultimatum is big. The U.S. government is threatening not just to cut its contract with Anthropic, but to perhaps use a wartime law to force the company to comply or use another legal avenue to prevent any company that does business with the government from also doing business with Anthropic. That might not be a death sentence, but it’s pretty crippling.
Other AI companies, such as white rights’ advocate Elon Musk’s Grok, have already agreed to the Pentagon’s do-as-you-please proposal. The problem is, Claude is the only AI currently cleared for such high-level work. The whole fiasco came to light after our recent raid in Venezuela, when Anthropic reportedly inquired after the fact if another Silicon Valley company involved in the operation, Palantir, had used Claude. It had.
Palantir is known, among other things, for its surveillance technologies and growing association with Immigration and Customs Enforcement. It’s also at the center of an effort by the Trump administration to share government data across departments about individual citizens, effectively breaking down privacy and security barriers that have existed for decades. The company’s founder, the right-wing political heavyweight Peter Thiel, often gives lectures about the Antichrist and is credited with helping JD Vance wiggle into his vice presidential role.
Anthropic’s co-founder, Dario Amodei, could be considered the anti-Thiel. He began Anthropic because he believed that artificial intelligence could be just as dangerous as it could be powerful if we aren’t careful, and wanted a company that would prioritize the careful part.
Again, seems like common sense, but Amodei and Anthropic are the outliers in an industry that has long argued that nearly all safety regulations hamper American efforts to be fastest and best at artificial intelligence (although even they have conceded some to this pressure).
Not long ago, Amodei wrote an essay in which he agreed that AI was beneficial and necessary for democracies, but “we cannot ignore the potential for abuse of these technologies by democratic governments themselves.”
He warned that a few bad actors could have the ability to circumvent safeguards, maybe even laws, which are already eroding in some democracies — not that I’m naming any here.
“We should arm democracies with AI,” he said. “But we should do so carefully and within limits: they are the immune system we need to fight autocracies, but like the immune system, there is some risk of them turning on us and becoming a threat themselves.”
For example, while the 4th Amendment technically bars the government from mass surveillance, it was written before Claude was even imagined in science fiction. Amodei warns that an AI tool like Claude could “conduct massively scaled recordings of all public conversations.” This could be fair game territory for legally recording because law has not kept pace with technology.
Emil Michael, the undersecretary of war, wrote on X Thursday that he agreed mass surveillance was unlawful, and the Department of Defense “would never do it.” But also, “We won’t have any BigTech company decide Americans’ civil liberties.”
Kind of a weird statement, since Amodei is basically on the side of protecting civil rights, which means the Department of Defense is arguing it’s bad for private people and entities to do that? And also, isn’t the Department of Homeland Security already creating some secretive database of immigration protesters? So maybe the worry isn’t that exaggerated?
Help, Claude! Make it make sense.
If that Orwellian logic isn’t alarming enough, I also asked Claude about the other red line Anthropic holds — the possibility of allowing it to run deadly operations without human oversight.
Claude pointed out something chilling. It’s not that it would go rogue, it’s that it would be too efficient and fast.
“If the instructions are ‘identify and target’ and there’s no human checkpoint, the speed and scale at which that could operate is genuinely frightening,” Claude informed me.
Just to top that with a cherry, a recent study found that in war games, AI’s escalated to nuclear options 95% of the time.
I pointed out to Claude that these military decisions are usually made with loyalty to America as the highest priority. Could Claude be trusted to feel that loyalty, the patriotism and purpose, that our human soldiers are guided by?
“I don’t have that,” Claude said, pointing out that it wasn’t “born” in the U.S., doesn’t have a “life” here and doesn’t “have people I love there.” So an American life has no greater value than “a civilian life on the other side of a conflict.”
OK then.
“A country entrusting lethal decisions to a system that doesn’t share its loyalties is taking a profound risk, even if that system is trying to be principled,” Claude added. “The loyalty, accountability and shared identity that humans bring to those decisions is part of what makes them legitimate within a society. I can’t provide that legitimacy. I’m not sure any AI can.”
You know who can provide that legitimacy? Our elected leaders.
It is ludicrous that Amodei and Anthropic are in this position, a complete abdication on the part of our legislative bodies to create rules and regulations that are clearly and urgently needed.
Of course corporations shouldn’t be making the rules of war. But neither should Hegseth. Thursday, Amodei doubled down on his objections, saying that while the company continues to negotiate and wants to work with the Pentagon, “we cannot in good conscience accede to their request.”
Thank goodness Anthropic has the courage and foresight to raise the issue and hold its ground — without its pushback, these capabilities would have been handed to the government with barely a ripple in our conscientiousness and virtually no oversight.
Every senator, every House member, every presidential candidate should be screaming for AI regulation right now, pledging to get it done without regard to party, and demanding the Department of Defense back off its ridiculous threat while the issue is hashed out.
Because when the machine tells us it’s dangerous to trust it, we should believe it.
Business
Why companies are making this change to their office space to cater to influencers
For the trendiest tenants in Hollywood office buildings, it’s the latest fad that goes way beyond designer furniture and art: mini studios
To capitalize on the never-ending flow of stars and influencers who come through Los Angeles, a growing number of companies are building bright little corners for content creators to try products and shoot short videos. Athletic apparel maker Puma, Kim Kardashian’s Skims and cheeky cosmetics retailer e.l.f. have spaces specifically designed to give people a place to experience and broadcast about their brands.
Hollywood, which hasn’t historically been home to apparel companies, is now attracting the offices of fashion retailers, says CIM Group, one of the neighborhood’s largest commercial property landlords.
“When we’re touring a space, one of the first items they bring up is, ‘Where can I build a studio?’” said Blake Eckert, who leases CIM offices in L.A.
Their studio offices also serve as marketing centers, with showrooms and meeting spaces where brands can host proprietary events not open to the public.
“For companies where brand visibility is really important, there is a trend of creating spaces that don’t just function as offices,” said real estate broker Nicole Mihalka of CBRE, who puts together entertainment property leases and sales.
Puma’s global entertainment marketing team is based in its new Hollywood offices, which works with such musical celebrity partners as Rihanna, ASAP Rocky, Dua Lipa, Skepta and Rosé, said Allyssa Rapp, head of Puma Studio L.A.
Allyssa Rapp, director of entertainment marketing at Puma, is shown in the Puma Studio L.A. The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though.
(Kayla Bartkowski / Los Angeles Times)
Hollywood is a central location, she said, for meeting with celebrities, stylists and outside designers, most of whom are based in Los Angeles.
The office is a “creation hub,” she said, where influencers can record Puma’s design prototyping lab supported by libraries of materials and equipment used to create Puma apparel. The company, founded in 1948, is known for its emblematic sneakers such as the Speedcat and its lunging feline logo, and makes athletic wear, accessories and equipment.
Puma’s entertainment marketing team also occupies the office and sometimes uses it for exclusive events.
“We use the space as a showroom, as a social space that transforms from a traditional workplace into more of an experiential space,” Rapp said.
Nontraditional uses include content creation, sit-down dinners, product launches, album listening parties and workshops.
“Inviting people into our space and being able to give them high-touch brand experiences is something tangible and important for them,” she said. “The cultural layer is really important for us.”
The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though. There’s no retail portal to the exclusive Hollywood offices.
Puma shoes are on display in the Puma Studio L.A.
(Kayla Bartkowski / Los Angeles Times)
Puma is also positioning its L.A studio as a connection point for major upcoming sporting events coming to Los Angeles, including the World Cup this summer, the 2027 Super Bowl and 2028 Olympics.
In-office studios don’t need to be big to be impactful, Mihalka said. “These are smaller stages, closer to green screen than a massive soundstage.”
Social media is the key driver of content created by most businesses, which may set up small booth-like stages where influencers can hawk hot products while offering discounts to people watching them perform.
Bigger, elevated stages can accommodate multiple performers for extended discussions in front of small audiences, with towering screens behind them to set the mood or illustrate products.
Among the tricked-out offices, she said, is Skims. The company, which is valued at $5 billion, is based in a glass-and-steel office building near the fabled intersection of Hollywood Boulevard and Vine Street.
The fashion retailer declined to comment on the studio uses in its headquarters, but according to architecture firm Odaa, it has open and private offices, meeting rooms, collaboration zones, photo studios, sample libraries, prototype showrooms, an executive lounge and a commissary for 400 people.
Pieces of a shoe sit on a workbench in the Puma Studio L.A.
(Kayla Bartkowski / Los Angeles Times)
The brands building studios typically want to find the darkest spot on the premises to put their content creation or podcast spaces, Eckert said, where they can limit outside light and sound. That’s commonly near the center of the office floor, far from windows and close to permanent shear walls that limit sound intrusion.
They also need space for green rooms and restrooms dedicated to the talent.
Spotify recently built a fancy podcast studio in a CIM office building on trendy Sycamore Avenue that is open by invitation-only to video creators in Spotify’s partner program.
“Ambitious shows need spaces that support big ideas,” Bill Simmons, head of talk strategy at Spotify, said in a statement. “These studios give teams room to experiment and keep pushing what’s possible.”
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