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I'm no expert on the subject but isn't there a similar situation with BBC/ITV which are encripted but free-to-view. If you don't have a Sky subscription you need free veiwing card which can only be supplied to a UK address. It's all to do with TV rights. For example ITV ma have brought the rights to show the latest Hollywood blockbuster but they can only show it to viewers within the UK. With Motors getting the rights to more and more championships the same restrictions will apply.
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