Final Answer:
Bargaining power shifting to content providers as the video content industry shifts from atoms to bits indicates that the digital distribution requires more negotiation with content creators thus option B is correct.
Step-by-step explanation:
The shift from atoms to bits in the video content industry signifies the move from physical formats to digital distribution. Option b, "Digital distribution requires more negotiation with content creators," reflects the changing dynamics where content providers gain increased bargaining power. In the digital era, content creators hold more negotiation leverage as their content becomes a valuable asset in the digital marketplace.
Unlike the traditional model where physical distribution limited the options for content creators, digital distribution platforms provide a broader reach and more direct access to consumers. This increased accessibility and the demand for diverse content strengthen the bargaining position of content providers. As digital platforms strive to attract and retain viewers, they find themselves negotiating with content creators for exclusive, high-quality content. This dynamic shift enhances the bargaining power of content providers, enabling them to secure better deals and terms in the digital landscape.
In summary, the transition to digital distribution empowers content providers with increased bargaining power. The need for diverse, engaging content in the digital era prompts streaming platforms to negotiate more actively with content creators, resulting in a shift of leverage towards the creators as they become crucial players in the evolving video content industry.