Regarding the five-second delay on a show like the Tony Awards, Bob Foster writes to ask…
Question regarding the 5-second delay: What if someone says or does something that lasts longer than five seconds? If they cuss and throw finger gestures for 15 seconds, what do we see on the screen to cover that time? How does that work?
The way it usually works is that they can cut the audio or the audio and the video. If someone were to say the dreaded "f" word, the Censor-Person would presumably say, "Kill the audio" and they'd take out the sound until such time as it seemed prudent to restore it. They probably can't bleep a specific word on the fly so the sound would just disappear for a period.
If someone exposed themselves or otherwise did something where the visual was deemed offensive, they would probably cut the picture, maybe going to a title card. There's always one ready just in case of technical mishaps. Then they could restore the video after the director had switched to something else..an audience shot, perhaps. It's theoretically possible that a fast-fingered tech director could quickly blur/pixelate part of the screen but they probably wouldn't take the chance. If they were close to the time for a commercial, they would probably just switch to it.
One thing to remember is that with a live show, there's always the chance of a large or small crisis. Cues are missed, microphones go out, etc. The director always has to have contingency plans for the unexpected. They have to ask questions like, "Well, what would we do if someone in the audience just ran up on stage and started delivering a commercial? What if there's a power failure in the theater? What if there's a fire?" The possibility of some actress flashing skin is just another of these possible problems and not even the most dire.