>>Why a single location? Do you want one movie theater in town?
A movie theater has a limited number of screens and showings; a streamer does not.
A better analogy would be a video rental store. Would you prefer that each studio had it's own rental outlets and you had to drive around town and have multiple membership cards if you wanted to rent movies from different studios? You can still have competition (Blockbuster, Hollywood Video, mom & pops, etc) but each would have the ability to show content from any studio.