Using regular offshore host is good in most cases, but you'll find situations where not using offshore hosting company to your web site is bad for you like a webmaster. These everything is usually when your submissions are questionable by the laws of varied big countries like USA.
The web laws of the usa are good for protecting copyright holders in nearly all areas from photography to software development as well as smaller stuff like user-written text on forums. Exactly what you place on the web is automatically copyrighted for you and nobody else can re-use it without written permission by you. When someone does your material (music, pictures, text content) without your acknowledgement - you can easily file a DMCA complaint and when they do not respond and take off the content showcased - you are able to file case to your state attorney.
Big software, entertainment and media corporations like ABC, CNN, Discovery or Paramount Pictures possess a group of lawyers working designed for the goal of protecting their copyrighted material (TV shows, movies, music or original interviews).
Since all the TV shows are copyrighted, media owners and TV networks in the USA offer licenses to local tv stations in third-party countries (such as, in Europe or Asia). These licenses cost a lot of cash, hence the local TV networks also get treatment difficult to keep their entertainment portfolio from being delivered to the visitors in the corresponding country they target to illegally (e.g. free of charge through an internet website). But developing a similar web site is a profitable business. Webmasters keep registering domains from anonymous registrars and rehearse offshore website hosting to build new websites with the intent of placing advertisements and earnings revenue. Obviously, they would like to be completely protected and anonymous from big corporations and their lawyers mentioned above.
This is how offshore hosting providers appear in play. Purchasing USA-based hosting for any website that isn't legal to get run in the usa is very little wise move to make. This is why webmasters from the USA or any other countries buy offshore hosting for their newly built websites. These hosting companies offer various anonymous payment options such as the Russian payment processor - Webmoney.
Running a web-based website business without needing the appropriate protection methods like offshore hosting doesn't seem possible in the end. That is why every successful webmaster should ask themselves before building their site - would it be legally safe to run it in the country from where I will be buying hosting?