The emergence of the TV industry in Taiwan is more than 40 years, but people here could hardly enjoy good TV programs. This article aims to explain Taiwan's TV production phenomena from the perspective of critical political economy of communication. This paper argues that none of the three major TV stations produced sufficient programs itself when they monopolized TV broadcasting in Taiwan. Instead, production tasks were outsourcing to many small independent production houses. And this is one of the reasons why the quality of Taiwan's TV programs was poor. After cable TV entered the market, there existed too many competing channels struggling for limited resources. In this period, advertisers unified and used TV ratings in media buying. This made many TV programs more like advertisements. In conclusion, the problems of Taiwan's TV industry were related to the historical context and certain structural factors that have to be placed in a wider capitalist system to understand its dynamics.