The ‘Network Effect’ on digital entertainment platforms primarily leads to which economic outcome in content distribution?

💡 Explanation:

The Network Effect (or demand-side economies of scale) dictates that the value of the platform increases exponentially with the number of users. This creates a powerful positive feedback loop, leading to 'market tipping' where one or a few platforms achieve dominance. This results in high barriers to entry for new competitors and market concentration, often forming an oligopoly.