In an effort to assess the potential impact of cable television on broadcasting statistical techniques were used 1) to estimate cable penetration, 2) to build a model describing how the audience divides its viewing among available signals, and 3) to assess relationships between audience and revenue and between revenue and programming. These techniques were put together in a comprehensive computerized model in order to estimate in detail the potential impact of cable on broadcasting. On the basis of these estimates, it i s predicted that cable will have the highest penetration in areas with two or fewer local signals; that large stations will likely gain and small stations lose audience as a result of cable growth; that strong positive relationships will exist between quantity and quality of public service and local programming and station revenue; and that the overall revenue lost due to cable (estimated to be about 9 percent) is small enough so that it would be wiped out by one year's normal revenue growth. (Author/JY)