The argument for enforcing a pan-European license is that the bigger market makes up for the lower returns from your home market. With some goods like football, this might be true. For others it isn't, for obvious reasons, mainly language. Your entire market for the Albanian equivalent of Sex Lives Of The Potato Men lives in Albania, pretty much.
The European Commission has just spent a few years looking at this. Barnier found that territoriality would diminish cultural diversity. Kroes leaked his report, then refused to endorse it. Juncker instructed Ansip to bring this regardless.
14 years ago a compromise was devised (see Santiago Agreement) which was a pan-European license but administered in the home territory. The EU didn't like it, and here we all are.
Biting the hand that feeds IT
