Zattoo is illegal because they are planning to insert advertisements in between moving from channel to channel, and in the UK advertising is not allowed on BBC channels because we the British public pay the license fee.
Quote:
In a statement the BBC said: “We have not entered into any formal agreements with Zattoo to redistribute BBC channels”. ITV said: “We wouldn’t rule out third party deals, but there aren’t any in place at the moment”. Channel 4 said: “We don’t have any formal arrangements with Zattoo”. Five said: “The inclusion of the Five service on Zattoo has not been authorised or licenced by Five”.
See: http://blogs.guardian.co.uk/organgrinder/2007/08/tv_unfestiv... ...and... http://informitv.com/articles/2008/05/09/zattooclaimscopyrig...
Quote: In a statement the BBC said: “We have not entered into any formal agreements with Zattoo to redistribute BBC channels”. ITV said: “We wouldn’t rule out third party deals, but there aren’t any in place at the moment”. Channel 4 said: “We don’t have any formal arrangements with Zattoo”. Five said: “The inclusion of the Five service on Zattoo has not been authorised or licenced by Five”.