Market Loop - TikTok fuels book sale boom

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16th June 2022

Bite-sized business news from the UK and beyond

Good morning An unusual referendum took place this week with the people of Whitby asked if they would like to see new measures to reduce the number of homes being used for holiday accommodation.

Nearly 20% of homes in the Yorkshire seaside town are second homes or holiday lets compared to 8% 20 years ago. It means many locals are priced out of getting on the property ladder with average house prices at £250k versus salaries of less than £20k.

Almost 95% of voters were in favour however the vote doesn’t have any legal weight, but could help shape local planning considerations with a mandate to crack down on second-home ownership.

Today's stories

TikTok fuels book sale boom
Return of Netflix hit Squid Game sends shares in studio higher

PUBLISHING
TikTok fuels book sale boom

What happened?
Harry Potter publisher Bloomsbury posted a 24% increase in revenue in the year to February to a record £230m and named TikTok as the major factor fuelling the demand for books.

BookTok is the leading to a revival in book sales. #BookTok is a TikTok community of book lovers that has reached over 58bn views.

It appeals to TikTok’s young adult user base by bringing influencer culture to reading, championing diversity, offering non-snobby recommendations, and providing a space where users can communally enjoy the books they love most.

The community grew during lockdown as more people spent time on social media and reading. With life returning to normal there were concerns that the demand for books would weaken but Bloomsbury believes it’s become more permanent.

The demand for classic books is still going strong. Almost 25 years on from the release of the first book, sales in J K Rowling’s Harry Potter series of books grew 5%. The publisher said sales of fantasy fiction writer Sarah J Maas, author of popular novel House of Sky and Breath, had rocketed 86%.

Looking ahead: The company is confident that the cost of living crisis won’t hurt sales. Bloomsbury thinks that books are affordable luxuries that consumers will keep buying even if their incomes are squeezed.

Other stories to keep you in the loop

Cost of living: Eight million households to start receiving support payments in July
Weak pound puts the squeeze on holiday spending
Passengers told not to travel by train during rail strikes
Premier Inn owner bounces back from £1bn loss as tourists return to London
Sri Lanka government workers get Fridays off to grow food ahead of shortages
Shares in the company behind BTS sink as Korean boyband announce hiatus
Twitter is ‘committed’ to Musk takeover despite turbulence

MEDIA
Return of Netflix hit Squid Game sends shares in studio higher

What happened?
Earlier this week Netflix announced that its widely popular gory survival drama Squid Game would be returning for a second season sending shares in Bucket Studios, a South Korean company linked to the show, up 30%.

As a reminder: Squid Game became an international hit when it was released on Netflix last September and was viewed by over 142m households, making it the streaming giant’s biggest ever show.

Oddly the announcement of the return of the show didn’t immediately benefit Netflix shares which fell 7%. Instead it was Bucket Studios, which owns a stake in the agency representing Squid Games lead actor Lee Jung-jae, that saw a share price jump.

It comes during a tough period for Netflix. The cost of living crisis and increased competition from peers like Disney and Amazon has led to concerns that momentum is slowing after a lockdown-related boom.

Earlier this year the company announced it had lost 200k subscribers in the first quarter of 2022, expected to lose 2m more in the three months to June and was laying off 150 employees.

Netflix shares are down 70% this year, meaning its next financial statement could feature more casualties than Squid Game.

Stat of the day

Yesterday the US Federal Reserve announced a 0.75% increase in interest rates to curb 40 year high inflation, the biggest hike since 1994

Interesting links from around the web

Gen Z: The workers who want it all
How to look after your plants while you go on holiday
The six things that fuel a friendship

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Market Loop - TikTok fuels book sale boom

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