Initially, it distributed the back library of Paramount Television and the post-1960 shows by Desilu, and several first-run syndicated shows. Originally, the company (like other sister companies sharing the Paramount name) was owned by Gulf+Western, which was reincorporated as Paramount Communications in 1989.
In 1987, it entered into an agreement with Tribune Entertainment Company whereby Paramount would distribute Geraldo, with Tribune producing. In 1989, both Tribune and Paramount worked again on The Joan Rivers Show, Paramount distributing the program and Tribune producing the series. Also that year, Paramount Domestic Television made its first foray into late-night television with the debut of The Arsenio Hall Show, hosted by Arsenio Hall himself. In 1990, Tribune and Paramount parted ways, with Tribune handling sales of the show in-house. In 1990, Maury Povich signed with Paramount to develop a daily talk show; his show debuted in 1991 and was distributed by Paramount until 1998, when Studios USA assumed those responsibilities.
After Paramount was sold to Viacom in 1994, it absorbed the distribution functions of Viacom Enterprises the next year. Viacom had distributed the classic CBS library which included the pre-1960 Desilu library, alongside series from Viacom Productions and Carsey-Werner Productions library (Paramount lost the rights to the latter library in late 1994 when Carsey-Werner formed its own in-house distribution unit).
PDT also gained syndication rights to series from MTV Networks with the Viacom merger, though these have rarely been seen in syndication (MTV generally licensed syndication rights of its programs to other companies at various points, such as October Moon, Debmar-Mercury, MGM Television, Trifecta Entertainment & Media and Litton Entertainment, rather than distributing them through PDT). Shortly after The Arsenio Hall Show was cancelled following the acquisition of Viacom, Paramount began distributing and producing MTV's The Jon Stewart Show for the syndication market. In 1987, Coca-Cola Telecommunications teamed up with Paramount Domestic Television (PDT), and Orbis Communications to form International Advertising Sales, which handled advertising of such programs produced by PDT, Orbis and Coca-Cola Telecommunications, including future programming for Merv Griffin Enterprises.
MCA Television and Paramount Domestic Television (PDT) had formed Premier Advertiser Sales, a joint venture created for the sale of advertising for their existing syndicated programs in September 1989. As a possible outgrowth of this sales joint venture, MCA and Paramount began plans for a new network, Premier Program Service.