A statistical analysis of new data suggests that television broadcasting will continue to prosper, despite increasing competition from cable television carrying distant signals. Data on cable and non-cable audiences in 121 counties with well defined signal choice support generalized least squares estimates of two models: total audience and audience shares. The models are used to simulate the effect of cable on the audience of local stations in a wide variety of situations. In markets with three network stations, for example, the simulations show two percent audience loss due to cable operating under current regulations, seven percent loss in the near term under relaxed regulations allowing carriage of more distant signals, and up to 20 percent loss in the future if cable penetration increases substantially. Losses are greater in smaller markets. Comparison shows these results to be broadly consistent with previous studies. It is a contribution to the Federal Communications Commission's "Inquiry into the Economic Relationship between Television Broadcasting and Cable Television." A list of references is provided, as well as a description of the data and equations estimated for time periods other than prime time. (Author/JEG)