Pay television, also known as subscription television, premium television or, when referring to an individual service, a premium channel, refers to subscription-based television services, usually provided by multichannel television providers, but also increasingly via digital terrestrial and streaming television services. In the United States, subscription television began in the late 1970s and early 1980s in the form of encrypted analog over-the-air broadcast television which could be decrypted with special equipment. The concept rapidly expanded through the multi-channel transition and into the post-network era. Other regions of the world beyond the United States, such as France and Latin America have also offered encrypted analog terrestrial signals available for subscription. The term is most synonymous with premium entertainment services focused on films or general entertainment programming such as, in the United States, HBO, (along sister channel Cinemax), MGM+, Showtime, and Starz, but such services can also include those devoted to sports, as well as adult entertainment.
Business model In contrast to most other multichannel television broadcasters, which depend on advertising and carriage fees as their sources of revenue, the majority of pay television services rely almost solely on monthly subscription fees paid by individual customers. As a result, pay television outlets are most concerned with offering content that can justify the cost of the service, which helps to attract new subscribers, and retain existing subscribers. Many pay television services consist of multiple individual channels, referred to as "multiplex" services (in reference to multiplex cinemas), where a main flagship channel is accompanied by secondary services with distinct schedules focusing on specific genres and audiences (such as multiplexes focusing more on "classic" films, or family-oriented programming), time shifting, or brand licensing deals (such as channels focusing specifically on Disney films (such as the early eras of the Disney Channel), or content from American pay television brands if they do not specifically run their own network in a specific market). Typically, these services are bundled together with the main channel at no additional charge and cannot be purchased separately. Depending on local regulations, pay television services generally have more lenient content standards because of their relatively narrower distribution, and not being subject to pressure from sponsors to tone down content. As a result, programming is typically aired with limited to no edits for time or, where applicable, mature content such as graphic violence, profanity, nudity, and sexual activity. As premium television services are commonly devoid of traditional commercial advertising, breaks between programming typically include promotions for upcoming programs, and interstitial segments (such as behind-the-scenes content, interviews, and other feature segments). Some sports-based pay services, however, may feature some commercial advertising, particularly if they simulcast sporting events that are broadcast by advertiser-supported television networks. In addition, most general interest or movie-based pay services do not adhere to the common top and bottom of the hour scheduling of other cable channels and terrestrial broadcasters. As such, programs often air using either conventional scheduling or have airtimes in five-minute increments (for example, 7:05 a.m. or 4:40 p.m.); since such channels broadcast content without in-program break interruptions, this sometimes leads to extended or abbreviated breaks between programs, depending on when the previous program concludes and when the start time of the next program is. The only universal variation to this is prime time, where the main channel in each pay service's suite usually schedules films to start on the hour.
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