Using industrial organization theory as the theoretical framework, the purpose of this study is to examine the relation between market competition and the media performance of Taiwan`s cable television industry. To measure the variable of media performance, this study focused on 6 indicators: subscribers` satisfaction, penetration rates, subscription fees, the number of channels, the net profits of system operators, and customer service. To collect data for this study, 2 research methods were adopted: intensive interviews directed toward 64 system operators and a telephone survey involving a probability sampling approach with 2,642 valid questionnaires.