Taking a quick peek at the Founder Institute's web page it looks like the type of business Tom Cruise was running in Magnolia. This is getting filed in my "Check these asshats predictions!" folder to be opened in 2015.
Well, I guess it would be a 'use tax' evasion. The number of entities who do make proper declarations is higher than you might think when consider B2B transactions. This is from a research paper I wrote last semester:
"Though, business-to-business compliance is estimated to be much higher (Bruce & Fox, 2009). Estimated losses of revenue at the national scale as a result of non-compliance in 2007 are $7.2 billion. Losses are expected to grow by 36.3% to $11.3 billion by 2012 (Bruce & Fox, 2009). "
Bruce, D. & Fox, W.F. (2009) State and Local Government Sales Tax Revenue Losses from Electronic Commerce. Retrieved from http://www.streamlinedsalestax.org/Execitive%20Committee/Previous_meetings/4_13_09/SSTP%20e-commerce%202009%20REV041309.pdf
(there's your bloody citation
There are certainly a lot of factors at work. That said, are there YouTube versions in some of the developing third world or second world countries? I agree that limiting the distribution to subset of countries definitely opens the door for local video sites. Or what about YouTube or Veoh actually expanding to serve the other markets that way the ad model could be better adjusted to serve the local market?
It's time to boot, do your boot ROMs know where your disk controllers are?