Pay TV only began to become common after the widespread installation of cable television systems in the 1970s and 1980s early premium channels were most often movie broadcasters such as the US-based Home Box Office and Cinemax, both currently owned by Time Warner.
Under these conditions, the pay TV concept was very slow to become commercially viable most television and radio broadcasts remained in-the-clear and were funded by commercial advertising, individual and corporate donations to educational broadcasters, direct funding by governments or license fees charged to the owners of receiving apparatus (the BBC in the UK, for example).
Restrictions were placed on access of pay TV broadcasters to content such as recent feature films in order to give free TV broadcasters a chance to air these programs before they were siphoned away by pay channels.
Scrambled signals were limited to large communities which already had a certain minimum number of unencrypted broadcast stations, relegated to certain frequencies. Įarly pay TV broadcasts in countries such as the United States used standard over-the-air transmitters many restrictions applied as anti-siphoning laws were enacted to prevent broadcasters of scrambled signals from engaging in activities to harm the development of standard free-to-air commercial broadcasting. The concept of pay TV or pay television involves a broadcaster deliberately transmitting signals in a non-standard, scrambled or encrypted format in order to charge viewers a subscription fee for the use of a special decoder needed to receive the scrambled broadcast signal. The MPAA and other groups which lobby in favour of intellectual property (specifically copyright and trademark) regulations have labelled such decryption as "signal theft" even though there is no direct tangible loss on the part of the original broadcaster, arguing that losing out on a potential chance to profit from a consumer's subscription fees counts as a loss of actual profit. The term "pirate" is used in the sense of copyright infringement.
Pirate decryption is the decryption, or decoding, of pay TV or pay radio signals without permission from the original broadcaster.
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