Abstract
In recent years the management of many large corporations have allocated considerable amounts of research capital to the development of highly complex security systems to be used in Pay TV. These decisions were often made without adequate financial analysis due to the diverse disciplines required for such an analysis. The objective of this paper is the creation of a well defined model capable of predicting the financial consequences of variations in the security parameters involved in Pay TV. It is also essential to differentiate between Pay TV Systems which depend upon serving subscribers from a randomly distributed population and Pay TV Systems based on geographic abnormalities in their subscriber distribution, such as the population densities associated with high rise apartment buildings in metropolitan areas. In the latter Systems the signals are transmitted either by beamed microwaves or by dedicated cables, permitting very low delivery cost per subscriber. Security in these systems is primarily a result of residing in a serviced complex, and this type of Pay TV System will not be considered in this paper.
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