Pricing and packaging[edit]

Pay television channels come in different price ranges. Many channels carrying advertising combine this income with a lower subscription fee. These are called "mini-pay" channels (a term also used for smaller scale commercial-free pay television services) and are often sold as a part of a package with numerous similarly priced channels. Usually, however, the regular pricing for premium channels ranges from just under $10 to near $25 per month per suite, with lower prices available via bundling options with cable or satellite providers, or special limited offers which are available during free preview periods or before the launch of a network's prestige series. However, some other channels, such as sports and adult networks may ask for monthly pricing that may go as high as near $50 a month. There are also premium television services which are priced significantly higher than the mini-pay channels, but they compensate for their higher price by carrying little or no advertising and also providing a higher quality program output. As advertising sales are sensitive to the business cycle, some broadcasters try to balance them with more stable income from subscriptions.


Some providers offer services owned by the same company in a single package. For example, American satellite provider DirecTV offers the Encore channels along with the Starz multiplex (both owned by Lionsgate's Starz Inc.) in its "Starz Super Pack";[10] and The Movie Channel, Flix and SundanceTV (the latter of which continues to be sold in the DirecTV package despite Showtime Networks no longer owning Sundance, that channel is now owned by AMC Networks) along with Showtime in its "Showtime Unlimited" package;[11] Cinemax and its multiplex networks, in turn, are almost always packaged with HBO (both owned by Warner Bros. Discovery).


Though selling premium services that are related by ownership as a package is common, that may not always be the situation: for example, in the United States, Cinemax and Encore are optionally sold separately from or in a single package with their respective parent networks HBO and Starz, depending on the service provider. The Movie Channel and Flix meanwhile, are usually sold together with Showtime (all three channels are owned by Paramount Global); though subscribers are required to purchase Showtime in order to receive Flix, The Movie Channel does not have such a restriction as a few providers optionally sell that service without requiring a Showtime subscription.


Unlike other cable networks, premium services are almost always subscribed to a la carte, meaning that one can, for example, subscribe to HBO without subscribing to Showtime (in Canada, there are slight modifications, as most providers include U.S. superstations – such as WAPA-TV – with their main premium package by default). However, subscribing to an "individual" service automatically includes access to all of that service's available multiplex channels and, in some cases, access to content via video-on-demand (in the form of a conventional VOD television service, and in some cases, a companion on-demand streaming service as well). Most pay television providers also offer a selection of premium services (for example, the HBO, Showtime and Starz packages) in one bundle at a greatly reduced price than it would cost to purchase each service separately, as an inducement for subscribers to remain with their service provider or for others to induce subscribers into using their service. Similarly, many television providers offer general interest or movie-based premium channels at no additional charge for a trial period, often one to three months, though there have been rare instances of free trials for pay services that last up to one year for newer subscribers to that provider's television service.

Distribution[edit]

Pay television has become popular with cable and satellite television. Pay television services often, at least two to three times per year, provide free previews of their services, in order to court potential subscribers by allowing this wider audience to sample the service for a period of days or weeks; these are typically scheduled to showcase major special event programming, such as the pay cable premiere of a blockbuster feature film, the premiere (either a series or season premiere) of a widely anticipated or critically acclaimed original series or occasionally, a high-profile special (such as a concert).


Subscription services transmitted via analogue terrestrial television have also existed, to varying degrees of success. The most known example of such service in Europe is Canal+ and its scrambled services, which operated in France from 1984 to the 2011 closedown of analogue television, Spain from 1990 to 2005 and Poland from 1995 to 2001. Some U.S. television stations launched pay services (known simply as "subscription television" services) such as SuperTV, Wometco Home Theater, PRISM (which principally operated as a cable service, only being simultaneously carried over-the-air for a short time during the 1980s, and unlike other general-interest pay services accepted outside advertising for broadcast during its sports telecasts), Preview, SelecTV and ON TV in the late 1970s, but those services disappeared as competition from cable television expanded during the 1980s.


In Australia, Foxtel, Optus Television and TransACT are the major pay television distributors, all of which provide cable services in some metropolitan areas, with Foxtel providing satellite service for all other areas where cable is not available. Austar formerly operated as a satellite pay service, until it merged with Foxtel and SelecTV. The major distributors of pay television in New Zealand are Sky Network Television on satellite and Vodafone on cable.


In the 2010s, over-the-top subscription video on demand (SVOD) services distributed via internet video emerged as a major competitor to traditional pay television, with services such as Amazon Video, Hulu, and Netflix gaining prominence. Similarly to pay television services, their libraries include acquired content (which can not only include films, but acquired television series as well), and a mix of original series, films, and specials. The shift towards SVOD has resulted in increasing competition within the sector, with media conglomerates having launched their own services (such as Disney+, Paramount+, Peacock, and Disney's acquisition of the majority of Hulu) to compete, and existing premium networks such as HBO (HBO Now)[12] and Showtime launching direct-to-consumer versions of their existing services to appeal to cord cutters. HBO and Showtime later absorbed their DTC offerings into wider services with a focus on their parent company's libraries, with HBO Now replaced by HBO Max in 2020 (which adds content from other Warner Bros. properties and third-parties, and would also be included with existing HBO subscriptions via television providers), and Showtime formally merged with Paramount+ in 2023.[13][14] Canadian premium service The Movie Network similarly merged with the CraveTV service owned by parent company Bell Media in 2018.[15]

an over-the-air subscription service that served Chicago, Cincinnati, Dallas/Fort Worth, Detroit, Fort Lauderdale, Phoenix, Salem/Portland and San Francisco.

ON TV

an over-the-air and cable television subscription service that served Southeastern Pennsylvania, Southern New Jersey, Delaware and the Delmarva Peninsula.

PRISM

an over-the-air subscription service that served Los Angeles, Milwaukee and Philadelphia and later the Wometco Home Theater territories after WHT ceased its own programming.

SelecTV

an over-the-air subscription service that served, in early 1980s, the Chicago, Fairbanks, and Minneapolis–St. Paul.

Spectrum (TV channel)

an over-the-air subscription service that served Washington, D.C., the Capital and Central regions of Maryland and Northern Virginia.

SuperTV

- served Chicago, Illinois

Tele1st

– an over-the-air subscription service that served New York City, Northern and Central New Jersey, Long Island and Fairfield County, Connecticut.

Wometco Home Theater

List of cable television companies

List of satellite television companies

Satellite television by region

Terrestrial television

Out-of-market sports package

Pay-per-view

Cable television piracy

Pirate decryption

Premium segment

Video on demand

Pay television in the United States

United States pay television content advisory system

Subscription television in the Philippines