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Sarnoff's Law states that the value of a broadcast network increases in direct proportion with the number of users (nodes) [1] . However, the underlying assumption about the linear nature and value of networks is baked into the way that the broadcast era economy is constructed. This clear, linear relationship between users and value makes planning investment and cost models relatively simple. For example, you can now precisely calculate the value of a network based on the users it has and the value they generate. Sarnoff’s Law helped define business models for broadcast networks, sponsors and content producers. It helped build the worlds of media, advertising that underlie the consumer economy. Key Example: Viewing Networks (initially TV, tweaked by Netflix).
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