With many regulations and limitations on U.S. cable television being lifted, new opportunities for consumers and cable suppliers are available. Using a logistic function I estimate a model for the demand for basic cable television services. My model differs from earlier cable penetration analyses primarily because of the inclusion of pay television characteristics. The results suggest that reception quality has improved over time and the earlier disadvantages of UHF stations have diminished. As expected, the addition of pay television has enhanced the desirability of cable. Also, the elasticity of the basic subscription fee differs between urban and rural systems.