As a user, Steam and Netflix both provided more value to me prior to credible competition. Netflix used to be one €9.99 subscription to watch basically everything, Steam was the one stop shop to manage all my games. Basically all the features I care about on either were already well established before their competitors came around.
On the other hand, my Steam account now represents a very expensive point of failure should it somehow get hacked or Valve decides to robo ban me.
But Netflix wasn't profitable at a €9.99 subscription, and therefore that was never sustainable. Look at how Netflix continues to raises prices just this year already.
It might be a better business _for the the business owners_ with less licensing fees due to less third party content and higher prices, but that's not the same as being better for the users.
On the other hand, my Steam account now represents a very expensive point of failure should it somehow get hacked or Valve decides to robo ban me.