PTV is the name of a recreational drug used by tourists and citizens of Silent Hill. Cybil Bennett makes a reference to drug-trafficking in Silent Hill, and proposes this as a possible reason for the strange activity going on in the town. PTV is purported to be made from an indigenous plant, White Claudia. Lisa Garland was a heavy user of PTV, and Michael Kaufmann was distributing it at one point.
This is one of the many "in-jokes" made by the programmers, as PTV is a reference to the band Psychic TV. A room in Nowhere contains boxes of the drug labeled as "PSYCHICK TV". When Harry Mason comes to the shopping mall, he approaches an escalator, at which point his daughter, Cheryl, suddenly pops up on some TV screens and calls out to him. Afterwards, they show the same symbol shown in the school earlier, and among the symbols flashing across the screens is the Psychic TV cross. Another reference is to Psychic TV's leader, Genesis P-Orridge, as the bridge to Central Silent Hill is named "Orridge".
References to PTV and White Claudia can be found throughout the game.
File 8: White Claudia Report
Location: Office, Silent Hill Police Station (on blackboard).
Product only available in select areas of Silent Hill.
Raw material is White Claudia, a plant peculiar to the region.
Manufactured here? Dealer = Manufacturer?
File 12: Newspaper Article
Location: Norman Young's motel.
"PTV" dealers still at large.
Suspicious deaths continue.
Like the anti-drug mayor, a narcotics officer dies of sudden heart failure of origin unknown.
File 14: White Claudia Description
Location: Third floor, Nowhere room.
Perennial herb found near water.
Reaches height of 10 to 15 inches.
Oblong leaves, white blossoms.
Seeds contain hallucinogen.
Ancient records show it was used for religious ceremonies.
The hallucinogenic effect was key.
- The drug possibly causes memory loss and manic behavior, as exhibited by Lisa who is a known PTV addict. Lisa is even shown performing sexual favors in Riverside Motel to obtain the drug.
- In Silent Hill, in the storage room in the alternate Alchemilla Hospital (where Harry can pick up the Blood Pack), there are several bottles in the shelves. Upon examining them, Harry will state "There's a bottle filled with some kind of drug. Better leave it". It is unknown whether it is or not PTV, though it's possible. 
- In Silent Hill: Homecoming, when Alex Shepherd wakes up on the shore, plants that fit the description of White Claudia can be seen growing.