What do you do in the case where a show is shown on ABC in the US and Channel 4 in the UK, and they both have online streaming? How do you just make that happen? Who is going to give up their rights to broadcast online? Are you just going to wish the contracts away? Yes, the torrenters have no problem avoiding the legal limits because they are illegal, that's not an answer.
Make a new territory called "Internet" which charges viewers directly. If a UK broadcaster wants the UK rights, that would still be available separately. People who would pay a premium aren't really in the same market as people who watch free-with-ads channels.
I know channel 4 etc won't like having a competitor with the same shows on their turf, but they do already - torrenters. At least this way, the competitor will just be one that charges a premium that will only be used by big fans of a show. The casual viewer will remain with the free-with-ads channel.
There are several cases where this happens already. Many TV shows/films are licensed to Irish and British TV stations, however many people in Ireland get BBC et al, so these people can see it twice. Everyone is happy with this system.
What do you do in the case where a show is shown on ABC in the US and Channel 4 in the UK, and they both have online streaming? How do you just make that happen? Who is going to give up their rights to broadcast online? Are you just going to wish the contracts away? Yes, the torrenters have no problem avoiding the legal limits because they are illegal, that's not an answer.