Why is Internet Media Region locked?

Dear Logan and friends,

I am having trouble understanding why some media is region locked on the internet. I am amusing the add company's do not want to pay for a Canadian watching us only adds, since I am unlikely to drive across the border for a white castle hamburger between eps of breaking bad or something.

It goes so far as denying me from directly paying for content out of pocket. A good example of this is Amazon Prime, It was advertised to me as Free shipping and online video streaming only to find out that the video streaming is US only. 

SO i guess the question is , why won't they take my money...Besides Amazon, they took it just didn't deliver everything that was promised...I did get a refund in the end.


It is because studios and networks license their properties to other companies by region, so if amazon starts streaming to Canada they would have to pay more in licensing and/or piss off whomever bought the rights to distribute those properties in that region. there is more to it but that is about what I understand. It seems like a problem created by the distribution on physical media since licensing something for another company to produce would mean a company would not have to: a) pay a bunch in shipping a good and b) not have to open up a factory to make say dvd's.