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Although it does very from Provider to Provider, what they are usually saying in this instance is that if you already pay for the On Demand service, you won't pay anything extra for that content. Most providers offer a certain amount of On Demand content included in the on demand service, and have other content available for viewing at individual rates (much like PPV). The only way to be absolutely sure that you won't get charged is to contact your Cable/Satellite provider, and ask them what your On Demand subscription includes at no additional charge.

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Q: On On Demand if it says Free with Subscription does it mean you already have the subscription?
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