The big US channels however, funded purely by advertising, also restrict online viewing. Aside from some red tape surrounding the broadcast rights they own for the content, why do they do this? Surely, with the right advertising (i.e. country-specific targeted ads), they can make the same amount of money from online viewers regardless of their geographic location.
Just to add to legionserial's response - which is good and true - there's also the fact that television broadcasters are still trying to figure a lot of this stuff out; it's not really as easy as it sounds.
First, their bread and butter income at this time is - and will remain for a while - their standard broadcast and cable-access revenues. They know they have to embrace Internet technology someway, but it's a tightrope walk trying to do that without eating into their broadcast revenues by stealing their own viewers away from themselves. It's not just a robbing Peter to pay Paul situation, because revenues for Internet streaming just are not as juicy as they are for broadcast. They can charge more per viewer capita for broadcast ads simple because they are more *effective*.
This is problem number two that they're still wrestling with; no one has yet figured out an advertising business plan for Internet content providers that actually makes a viable amount of money for them. The Internet is not only like one gigantic Tivo box with the digital technology that allows users to minimize the impact of embedded commercials, but the average Internet user is simply relatively non-responsive to standard types of advertising schemes. They want everything pure and unadulterated by ads, and they want it for free, because in their tiny little heads it has somehow become their God-given right to get anything they want whenever they want, and not have to pay a dime for it.
(Those who have been around this board for a couple of years will remember the HUGE dust up of complaints and defections that happened a couple of years ago simply because Dragon added one - ONE - static in-line ad in each thread display in an effort to actually make some money for running this board. People not only unreasonably got pissed off at Dragon for making such a small and understandable advertising move, but they actually actively promoted software hacks out there that allowed their browsers to simply ignore and not display those ads. Some actually just stopped coming here. This kind of mentality is all over the Internet.)
The number of content websites out there that actually make enough money off of advertising without having to be further subsidized by the parent company or their financiers could probably be counted on both of your hands, And they are doing it only because their content is exceptionally cheap to obtain or produce, like free user-submitted content or cheap-to-produce blog entries, and because they manage to attract hundreds of thousands or millions of visitors a day. Neither of those conditions applies to live streaming of television network content.
G.