I think what is particularly frustrating about this model is that the locking applies to content even when you've already paid for access. I am an American expat living in Russia currently, and one of my larger regrets is that I cannot watch the content I legally have access to under Amazon Prime because of geo-locking. Prime's original content is not geo-locked in the slightest, but for any other show, movie, music, or book which I have already paid for access to, I am unable to view it simply because I'm in the wrong IP block.
edit: strangely though, as I just noticed on my FireHD, content I downloaded to the device using PrimeVideo in the US is viewable; it's simply streaming Prime content which is forbidden. The technical difference between a copy sitting in a browser cache that was downloaded in Russia and a copy sitting in the temp storage for the FireHD video player that was downloaded in the US is so insignificant it's baffling that one is allowed and the other isn't. Ultimately, both methods (would) accomplish the same goal; watching a licensed show from Prime in the Russian Federation.
I understand, to a degree, that the reason is a complex web of licensing and distributor agreements. But I feel like these agreements have a very tenuous relationship to streaming content as it differs significantly from the purpose of the original agreements, which was to allow local distributors to profit on the licensed content with localized versions; but that was for an entirely different medium. It's an incredibly weird scenario to me because an agreement over physical media from probably a decade or two ago is preventing me from viewing digital media which wasn't even an option at the time of the original agreements.
There's no extra cost to Amazon to let me watch my stupid shows in St. Petersburg, and as I'm not interested in DVDs/Bluray anyways, it's not as if access to said streams is costing any distributors anything; the "potential sale" was already missed the moment that I got access to the streaming service in the US, both for US distributors and for any foreign distributor.
Individual game companies seem to be able to handle regional distribution even when the economies vary enough to encourage regional pricing; I'm not sure why non-interactive media thinks it cannot do this, or that it would somehow be bad. But it's particularly frustrating that these services, once purchased, work in some places on the planet, but not others, and the only reason is a bunch of agreements made well before the services even existed.