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The NFL
Acquired
Impact of thin margins and volume on value allocation in supply chain
Thin margins in the supply chain require high volume to reallocate profit to content creators, leading to the concentration of value at the creator's end. Similar to the airline industry, media companies acquiring content rights have merged for massive scale to afford any margin. This has likely resulted in worse unit economics for buying rights and selling ads. The NFL benefits from relying on broadcast partners to generate guaranteed revenue while keeping all profits, allowing for multiple resale opportunities.
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