Update on the Mercer Report – "geo-fencing"

While, as our web guy Dale Hobson suggests, blocking Internet access across borders is very 20th century, the blocking goes both ways. I first heard the term “geo-fencing” from the Mercer Report’s executive producer yesterday. I had e-mailed wondering why we Americans can’t see his wonderful show’s video via YouTube any more. He said “it’s geo-fencing” and reported that Canadians can’t for example, access Saturday Night Live anymore either. Friends in Montreal and Ottawa confirm. Apparently, it has to do with royalties and rights.
Googling “geo-fencing” produced an incredibly wonky set of responses. But one Toronto blogger said “geo fencing is killing the Interet” back in Nov. 2007. Does anyone know more? Is there any break in the geo fence?