Geoblocking Brazilians – Tsc Tsc

I came across a post by a guy named Gustavo on Tumblr about how Brazilians are geoblocked on many services. Geoblocking is blocking an Internet service based on where you live. I’m not sure on the specifics behind this practice or why it even has to occur because, for example, if backend agreements are already in place with major record labels, why can’t Brazilians listen to or download songs from those labels? We aren’t talking about giving Brazilians access to music from labels that don’t have agreements with certain services yet, so what’s the problem?

Gustavo says,

“Here in Brazil I can’t use Playstation Network, Hulu, iTunes (for media), Spotify (just like in the states), (actually I need to pay for that) and the Kindle store just won’t allow me to download the newest and best stuff. And the list just keeps getting bigger and bigger as new services are launched.”

Anyone know why this is so, especially when Brazilians are heavy Internet users?