Tariff doubts push NFL, NBA to bet big on digital merch
Businesses are increasingly turning to digital markets and blockchain technology to mitigate the impact of tariff volatility on physical goods. Executives, like Ridhima Kahn from Dapper Labs, note that brands are exploring digital collectibles to enhance fan engagement amid rising costs. Successful franchises such as the NBA and NFL have already embraced digital assets, including NFTs tied to game highlights. The global nature of fan bases is driving brands to focus on online experiences, with NFT sales rising and platforms like Flow achieving record total value locked. Enhanced user experiences and clearer blockchain regulations are boosting confidence among brands, leading to increased adoption of digital collectibles. IP-backed collections are gaining traction, with NBA Top Shot ranking highly on OpenSea. Kahn emphasizes the importance of understanding fan behavior through direct feedback, allowing for tailored digital products. Digital collectibles offer unique engagement opportunities that physical goods cannot, such as personalization and global accessibility. Brands are not abandoning physical merchandise but are expanding their strategies to include digital offerings, which can provide more stable revenue streams.
