This thesis has explored the opinions of pay-cable television subscribers in Muncie, Indiana relative to the claims of pro- and anti-deregulation forces. These claims include charges that an unregulated cable industry will drive theater owners bankrupt, deprive over-the-air television of revenue base, price low-income groups out of the television entertainment market, and proclaimed pay-cable as an open, willing market for performing arts and other cultural programming. This study disproved all the claims except:(1) that pay-cable is depriving theater owners of significant numbers of patrons, and (2) that there was a significant decrease in the watching of regular network programming as a result of HBO subscription.A secondary purpose of this research was to establish criteria and concepts for an in-depth study of the cable television industry and its relationship and effects on commercial over-the-air television.