Business
TikTok Sells A Lot of Books. Now, Its Owner Wants to Publish Them, Too.
A new publishing company began courting self-published romance writers earlier this year. The pitch, delivered in a generic email, was impersonal and formulaic. The terms weren’t generous, sometimes amounting to just a few thousand dollars for the rights to a book.
Then came the clincher. The publisher was ByteDance, the parent company of TikTok, a social media company that traffics in short videos and has, over the past several years, helped create some of the biggest best sellers on the market. Along with an advance and royalties, the company was offering comprehensive online marketing services, according to several authors and publishing professionals with knowledge of ByteDance’s offers.
“This could be the next big thing,” Mariah Dietz, a self-published romance author, said of ByteDance’s publishing arm.
The company has already radically changed the way books are discovered online. And while ByteDance has said little publicly about its publishing plans, which are at an early stage, it is clear the company has the potential to sell a vast quantity of books.
Even under increased regulatory scrutiny over concerns it could be influenced by the Chinese government, ByteDance can reach an audience that is enormous, and growing. Many of TikTok’s users — more than 150 million in the United States alone — are interested in books. In the past year, videos with the #BookTok hashtag have been viewed more than 91 billion times, up from nearly 60 billion views the year before, according to the company.
Exposure on the platform has catapulted many authors — Colleen Hoover first among them — to the best-seller list. Posts tagged #ColleenHoover have been viewed more than 4.2 billion times, and her books have sold more than 24 million copies.
Sales driven by more than 100 authors with large BookTok followings reached $760 million in 2022, a rise of 60 percent over 2021, according to Circana BookScan, which tracks print sales. So far this year, sales have gone up nearly 40 percent over last year.
“To say it’s hugely important is an understatement at this point,” said Bess Braswell, a senior publishing director at Harlequin.
ByteDance filed a trademark for a publisher, 8th Note Press, in late April, describing it as a company that provides a range of book publishing products and services. According to the description, it would create an ecosystem where people could find, buy, read, review and discuss books.
The company also hired Katherine Pelz, a romance industry veteran, as an acquisitions editor.
ByteDance declined to confirm details about their publishing and retail operations, including which genres it plans to publish, when their first titles will appear and whether their books will be sold in traditional stores.
Despite how little is known about their intentions, ByteDance’s presence in the field has already raised concerns.
By tapping into TikTok’s ability to drive attention to books and its vast trove of user data, ByteDance could boost its own authors at the expense of others and make BookTok less organic and user-driven, a prospect that worries many TikTok users and authors.
The company could also put traditional publishers and self-published authors at a disadvantage. Even as they’ve come to rely on the platform to promote their books, publishers have found it difficult to manufacture viral book videos, since users tend to reject anything that feels corporate or inauthentic.
Their concern is that ByteDance could put its thumb on the scale in favor of its own projects, leaving less room for other books and posts that would go viral organically. In response to a question about its promotional plans, the company said that 8th Note Press is a separate entity from TikTok.
ByteDance’s advances so far have not competed with those of traditional houses: While independent presses may pay just a few thousand or tens of thousands of dollars, at larger houses, advances can run from roughly $50,000 into the millions. ByteDance said it could not disclose financial arrangements with authors but added that it believes its offers are competitive with industry standards.
For now, ByteDance seems focused on fantasy, romance and mystery, genres that are popular on the platform.
Tricia O’Malley, a best-selling romance author who has self-published about 40 novels, received an offer from ByteDance in April to buy the rights to two of her books. The deal included a social media marketing campaign, royalties and an advance of $3,500 per book — less than the titles earn every month, O’Malley said.
The company was interested in fantasy and romance, old books and new ones, stories that were “wholesome, fun and sexy, but nothing too steamy or dark,” she said.
She turned down the offer, but she said she was tempted: “The reality is that BookTok is selling books.”
For others, the company’s promise to provide robust online marketing for its authors could be hard to resist.
Ella Fox, a self-published romance author and advertising consultant who runs ad campaigns for other writers on TikTok, said that, presumably, ByteDance could make sure the algorithm prioritized their own books. “People would give their eye teeth to get in front of that audience and to be pushed in that way,” she said.
Some in the industry are dubious that ByteDance can carve out a sizeable chunk of the market, in part because publishing remains a stubbornly analog and relationship-driven business. Print sales still account for more than 70 percent of trade publishers’ revenues, according to the Association of American Publishers; any new major new publishing company would need printing and distribution capabilities, and relationships with booksellers.
“I’m less concerned about TikTok becoming a publisher tomorrow,” said Dominique Raccah, publisher and chief executive of the publishing company Sourcebooks, “because building a publishing infrastructure that works — that’s hard.”
It’s unclear what the company’s print distribution plans are and whether they intend to sell their books in brick-and-mortar stores. In an email reviewed by The New York Times, ByteDance told an author that it plans to focus on digital books with limited print on demand runs until TikTok launches an online retail store.
TikTok has already changed the way that books are acquired. Traditionally, readers learned about new authors from booksellers. Now, publishers are learning about viral authors from booksellers who come to them with requests from readers.
Bloom Books, a romance and women’s fiction imprint within Sourcebooks, signed several authors who were previously self-published — including Scarlett St. Clair, Piper C.J. and L.J. Shen — after learning their books were in demand from buyers at Walmart and Barnes & Noble.
“We started hearing from accounts, ‘This author is trending on TikTok, but we can’t stock the books,’” said Molly Waxman, the executive director of marketing for Sourcebooks’ adult fiction imprints.
Berkley has acquired books by Ruby Dixon, the author of the “Ice Planet Barbarians” series, who began by self-publishing and was one of the first TikTok phenomena, and by the twin sisters Krista and Becca Ritchie, who self-published their “Addicted” series. Avon signed the self-published author Mariana Zapata, who has drawn more than 280 million views on TikTok.
Some editors and publishers also wonder if ByteDance will be able to detect viral self-published authors when they start trending, and swoop in to sign them before they become obvious targets for other publishers.
There are industry veterans who take comfort in the fact that ByteDance will likely face the same challenges as traditional publishers: Readers are fickle, and ultimately, viral videos won’t automatically create a blockbuster if the books themselves aren’t appealing.
“They can get more eyeballs, but is that going to translate into sales?” asked Cindy Hwang, the vice president and editorial director of Berkley. “It’s not just about getting the hits, it’s about getting readers to buy the book.”
Business
Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns
The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.
The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.
The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.
Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.
“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.
Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.
The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.
The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.
Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”
Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.
This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.
Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.
Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.
Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.
“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.
Business
Craft supplies retailer Joann declares bankruptcy for the second time in a year
The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.
The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.
“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.
According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.
Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.
“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”
Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.
Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.
Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.
High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.
If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.
Business
U.S. Sues Southwest Airlines Over Chronic Delays
The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.
In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.
“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”
Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.
In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.
“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.
Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.
The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.
“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.
The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.
The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.
This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.
-
Technology7 days ago
Meta is highlighting a splintering global approach to online speech
-
Science5 days ago
Metro will offer free rides in L.A. through Sunday due to fires
-
Technology1 week ago
Las Vegas police release ChatGPT logs from the suspect in the Cybertruck explosion
-
Movie Reviews1 week ago
‘How to Make Millions Before Grandma Dies’ Review: Thai Oscar Entry Is a Disarmingly Sentimental Tear-Jerker
-
Health1 week ago
Michael J. Fox honored with Presidential Medal of Freedom for Parkinson’s research efforts
-
Movie Reviews1 week ago
Movie Review: Millennials try to buy-in or opt-out of the “American Meltdown”
-
News1 week ago
Photos: Pacific Palisades Wildfire Engulfs Homes in an L.A. Neighborhood
-
World1 week ago
Trial Starts for Nicolas Sarkozy in Libya Election Case