By watching from home, you are increasing their market share for whatever time slot they are in. In doing so you increase the ad revenue for the networks who cover the events.
The Olympics site selection comittee is a very well publicized body. The selection process is a competition in and of itself, with the competing cities all showcasing themselves to the selection comittee. When Beijing was selected, it was announced with major fanfare, but nothing was said.......until it was far, far too late to do anything.
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