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 . 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 parts of the world beyond the United States, such as France and Latin America have also offered encrypted analog terrestrial signals available for subscription.
46-400: U&Alibi is a British premium television channel that was launched on 1 November 1997 as UK Arena. It was renamed UK Drama in 2000, and then UKTV Drama in 2004, Alibi on 7 October 2008, and U&Alibi on 7 November 2024. The channel originally launched as part of the new four-channel UKTV network on 1 November 1997. The channel, originally named UK Arena, focused on arts programming and
92-407: A product category. A clear USP helps consumers to understand differences - even non-existent differences - between brand offerings in a category, and may also help consumers to form a positive attitude towards a brand and may ultimately contribute to increased levels of brand recall . In order to determine an appropriate USP for any given brand, marketers must undertake extensive research of
138-432: A point of difference to stand out is a major benefit in markets; customers will be drawn to a business if it offers something no one else has. Whether differences are subtle or blatant, they can be the driving force that ensures the end-consumer makes the desired decision in choosing one product over the competition. In markets which contain many similar products, using a USP is one campaign method of differentiating
184-469: 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. 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
230-406: A crude decrypting of the over-the-air television signal and a decoding box, but never caught on for use at that time. It took another four decades when cable broadcasters started using pay-per-view on a widespread basis. "Free" variants are free-to-air (FTA) and free-to-view (FTV); however, FTV services are normally encrypted and decryption cards either come as part of an initial subscription to
276-405: A feature that highlights product benefits that are meaningful to consumers. USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use. In summary: The USP concept is one of the eight broad approaches to creative executions in advertising . The USP approach can be effective where high levels of technological innovation characterise
322-632: A focus on their parent companies' libraries, with HBO Now replaced by HBO Max (now 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 merging with Paramount+ in 2023. Canadian premium service The Movie Network similarly merged with the CraveTV service owned by parent company Bell Media in 2018. Pay-per-view (PPV) services are similar to subscription-based pay television services in that customers must pay to have
368-513: 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
414-535: 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 ) 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
460-496: A newly purchased space and started broadcasting from 1:00pm at the end of April, before the full transition to a 24-hour network. On 2 May 2006, a one-hour timeshift service - UKTV Drama +1, launched on Sky in the vacated broadcast space formerly home to UKTV People +1. It broadcast from 3:00pm–2:00am every day. Corresponding to the name on the main channel shows all programming from the channel one hour later, with no special idents or continuity used. On 23 October 2007, UKTV Drama +1
506-456: A part-time service, starting at 7:00pm. On 5 November 2001, UK Drama began timesharing with a new sister channel, UK Food, which aired in UK Drama's daytime slot. On 10 January 2003, UK Food extended its broadcast hours while UK Drama reduced its broadcast hours to 9:00pm–5:00am. On 8 March 2004, the channel, alongside all other UKTV channels, was renamed UKTV Drama to increase awareness of
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#1732794451144552-425: A pay television bouquet – in other words, an offer of pay-TV channels – or can be purchased for a one-time cost. FTA and FTV systems may still have selective access. ABC Australia is one example, as much of its programming content is free-to-air except for National Rugby League (NRL) games, which are encrypted. Unique selling proposition In marketing , the unique selling proposition ( USP ), also called
598-448: A professor at Harvard Business School , suggested that, "differentiation is one of the most important strategic and tactical activities in which companies must constantly engage." The term has been extended to cover one's " personal brand ". A unique selling proposition (USP) refers to the unique benefit exhibited by a company, service, product or brand that enables it to stand out from competitors. The unique selling proposition must be
644-693: 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
690-764: 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 , or content from U.S. pay television brands if they do not specifically run their own network in
736-425: A seasonal package. They are typically the most expensive type of pay services, generally running in the range of $ 35 to $ 50 per month. Some pay services also offer pornographic films ; Cinemax was well known for carrying a late-night block of softcore films and series known as "Max After Dark"—a reputation that led to the network often being nicknamed "Skinemax" by viewers. Cinemax phased out this programming in
782-540: 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
828-401: 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
874-485: 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
920-707: 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
966-717: 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
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#17327944511441012-610: The Wimbledon tennis tournament. Specialty pay sports channels also exist—often focusing on international sports considered niche to domestic audiences (such as, in the United States, cricket ), and are typically sold at a higher expense than traditional premium services. Out-of-market sports packages in North America are multi-channel pay services carrying professional or collegiate sporting events which are sold in
1058-563: 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"; and The Movie Channel , Flix and SundanceTV (the latter of which continues to be sold in
1104-469: The standard-definition channels. The output of the channel is a combination of drama series and serials comprising first-run exclusive and second run shows from the United States and Canada, together with second run showings of shows from the BBC and ITV . Pay television The term is most synonymous with premium entertainment services focused on films or general entertainment programming such as, in
1150-473: The unique selling point or the unique value proposition ( UVP ) in the business model canvas , is the marketing strategy of informing customers about how one's own brand or product is superior to its competitors (in addition to its other values ). This strategy was used in successful advertising campaigns of the early 1940s. The term was coined by Rosser Reeves , a television advertising pioneer of Ted Bates & Company . Theodore Levitt ,
1196-586: The 2010s, citing that it did not align with its current focus on action programming, and that internet porn and the amount of sexual content in other mainstream premium series (such as Game of Thrones ) made a specific block for such content redundant. Specialized channels dedicated to pornographic films also exist, that carry either softcore adult programs (such as Playboy TV ), or more hardcore content (such as The Erotic Network and Hustler TV ). Pay television channels come in different price ranges. Many channels carrying advertising combine this income with
1242-472: 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; 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
1288-469: The UKTV brand. On 1 July 2004, UKTV Food extended its broadcast hours, leading to UKTV Drama moving to UKTV Food +1's slot (which had been vacated by UKTV People ), although still broadcasting the same hours as before. On 9 April 2005, UKTV announced that UKTV Drama would expand to a full 24-hour schedule on 30 May. In order to prepare for the transition, the channel moved out of UKTV Food +1's downtime slot to
1334-431: The United States, Cinemax , HBO , MGM+ , Showtime , and Starz , but such services can also include those devoted to sports , as well as adult entertainment . 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
1380-737: The aforementioned leniency in content standards, they too can contain content that is more mature than those of other cable channels or television networks . These series also tend to be high-budget and aim for critical success in order to attract subscribers: notable premium series, such as HBO 's Curb Your Enthusiasm , Game of Thrones , Sex and the City , and The Sopranos , and Showtime 's Dexter , Homeland , and Weeds , have achieved critical acclaim and have won various television awards. Some premium channels also broadcast television specials , which most commonly consist of concerts and concert films , documentaries , stand-up comedy , and in
1426-419: The broadcast decrypted for viewing, but usually only entail a one-time payment for a single or time-limited viewing. Programs offered via pay-per-view are most often movies or sporting events, but may also include other events, such as concerts and even softcore adult programs. In the U.S., the initial concept and technology for pay-per-view for broadcast television was first developed in the early 1950s, including
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1472-498: The category as well as of consumers. It is important to be able to locate a space in the market, ensure that the feature is something that is unique, and also something that is valued by potential customers. Sellers also need to try selling a brand to themselves; this is so they know they are passionate about a product and confident it can succeed. The seller needs a key point to use when trying to sell their product or service, and coming up with it prior to selling will benefit. Having
1518-428: 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
1564-647: 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
1610-454: 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
1656-494: The original term of license agreements with a distributor may also be broadcast as "sub-runs", in which a service holds rights to film long after the conclusion of a distribution agreement (under this arrangement, the pay service that originally licensed the rights to a particular film title, or one other than that which had held rights, may hold the broadcast rights through a library content deal). Many general interest premium channels also produce original television series . Due to
1702-563: The other hand, Wal-Mart differentiates itself through its campaign “save money, live better" by having a focus on being the cheapest department store and reminding customers that it's not how much one spends on a product that matters. This USP rests on strong, direct and concise messaging that gives consumers a clear picture of exactly what value they will receive for choosing a given brand or product. Marketing strategies are very important for different companies to establish their identity and increase market share . A good USP should target
1748-597: The past, theatrical plays . Sports programming is also featured on some premium services; HBO was historically known for its broadcasts of boxing , while Showtime and Epix also carry mixed martial arts events. Some general interest premium channels have aired other professional sporting events in the past: HBO for example, carried games from the National Hockey League (NHL), National Basketball Association (NBA) and American Basketball Association (ABA) in its early years, and from 1975 to 1999 aired
1794-423: The potential for new manufacturers at any time. Apple used the slogan "Beauty outside, Beast inside" for its Mac Pro campaign to differentiate its product as "beautiful" compared with any other desktop computer. Buyers of this product were willing to pay a premium price, compared with technically similar desktop computers. Apple differentiates itself with a focus on aesthetics and cutting-edge technologies. On
1840-521: 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. Films comprise much of the content seen on most pay television services, particularly those with a general entertainment format and those that focus exclusively on films . Services often obtain rights to films through exclusive agreements with film distributors . Films acquired during
1886-433: The product from the competition. Products or services without differentiation risk the consumer seeing them as commodities and fungible , thus lowering price potential. Thus having a unique selling point is essential to have a successful business that can handle current competition, as well as possible future comers in similar markets. The desktop personal-computer market provides one example with many manufacturers and
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1932-631: The rebranded Gold channel or to the newly created flagship channel Watch . On 29 July 2011, UKTV announced that it had secured a deal with BSkyB to launch three more high-definition channels on Sky . As part of Virgin Media's deal to sell its share of UKTV, all five of UKTV's HD channels would also be added to Virgin's cable television service by 2012. Alibi HD launched on 3 July 2012 on Sky and Virgin Media, while Dave HD and Watch HD launched in October 2011. All three channels are HD simulcasts of
1978-582: 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
2024-465: 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
2070-408: Was added to Virgin Media . Following the successful relaunch and rebranding of the channel UKTV G2 as Dave on 15 October 2007, the remaining UKTV channels underwent the same changes. UKTV Drama and UKTV Drama +1 were renamed as Alibi and Alibi +1, respectively, on 7 October 2008, and the channel's programmes were changed to focus specifically on crime dramas. All non-crime dramas were transferred to
2116-415: Was named after the BBC 's flagship arts programme Arena (The BBC , through BBC Worldwide , owning half of UKTV and therefore half the channel). The channel aired as a part-time service, airing from 3:00pm every day. However, following disappointing ratings, the channel's focus was broadened to include all drama series, and as a result was renamed UK Drama on 31 March 2000. However, the channel remained
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