Though cable TV has been existing in Taiwan for more than 20 years, it did not gain a legal status until recently. Before it was legalized, cable TV in Taiwan was operated as a small business without any modern management approaches. The legalization of cable TV industry does not bring very much improvement on its operation. It is still far from a well-established industry. The main purpose of this study was to examine the current situation of the industry in order to know what can be done in the regulations and the government’s policies to upgrade this industry. Three research methods were employed to achieve this goal: (1) a survey on cable TV operators — a personal survey was conducted to all cable TV operators in Taiwan, valid data were collected from 119 cable TV operators, (2) secondary data analysis — information related to cable TV were gathered from newspapers and magazines, and then were analyzed to confirm or complement the findings of the personal survey, (3) an examination on laws and regulations — this study reviewed related regulations, communication laws, as well as government’s policies to discover what were the barriers which prevented cable TV industry from developing. The findings of the study were discussed in the paper.