

Videocipher was invented in 1983 by Linkabit Corporation (later bought out by M/A-COM in 1985, operated as M/A-COM Linkabit). HBO and Cinemax became the first two services to announce intent to encrypt their satellite feeds late in 1984. It further created a framework (and implicit mandate to provide) subscription services to TVRO consumers to allow legal decryption of those signals.

This created a framework for the wide deployment of encryption on analog satellite signals. Reception of encrypted satellite signals by a consumer, when they have received authorization to legally decrypt it.Reception of unencrypted satellite signals by a consumer.The Cable Communications Policy Act of 1984 clarified all of these matters, making the following legal: Two open questions existed about this practice: whether the Communications Act of 1934 applied as a case of "unauthorized reception" by TVRO consumers and to what it extent it was legal for a service provider to encrypt their signals in an effort to prevent its reception. Satellite television consumers could watch these services simply by pointing their dish at a satellite, and tuning into the provider's transponder. Though the first half of the 1980s, HBO, Cinemax and other premium television providers with analog satellite transponders faced a fast growing market of TVRO equipment owners.
