I assume you implicitly mean that exclusive streaming deals shouldn't be allowed either. If so, I agree (if not, then the whole scheme can be trivially worked around).
Movies (or games, music, books) aren't commodities. When single vendors can get exclusive distribution rights, the space becomes much less competitive, and this removes the benefits customers are supposed to get from competition.
Perhaps something a bit more flexible, such as statutory licensing fees and availability 1 year after initial distribution. Everything being available for anyone to license without restriction at a set price structure. Distributors of course would be free to negotiate cheaper rates for more obscure content.
Movies (or games, music, books) aren't commodities. When single vendors can get exclusive distribution rights, the space becomes much less competitive, and this removes the benefits customers are supposed to get from competition.