I think this will sort itself out in the near future if Google really wants to play in this area (who knows maybe this will be cancelled after a year it's Google after all). They have the machine learning power to negotiate deals with content creators that have some sort fo usage royalties. They basically get worldwide streaming rights in return for a reasonable payback that takes international viewers into account. I think the more interesting play could be targeted add injection. Imagine this service for free but with targeted adds where TV commercials would run...I'm not sure online viewers are actually willing to watch adds for TV shows but free is also free so there's that. Or maybe a hybrid or maybe virtual product placement or some sort of add system I can't think of yet.

Add to that a theoretical possibility of automatic translation and possibly even modeling the Chinese voice of actor X to sound like the original from the original broadcast data which would cut out the dubbing costs and the worldwide streaming workflow could be optimized further.