Program provider industry has grown in terms of market size volume since start of cable TV in Korea. However, it is facing a serious problem in producing quality original cable programming. The low cable TV subscription fee essentially limits the program compensation to program providers at unreasonably lower level. Since the compensation from cable TV system operator is low, most of program providers heavily depend on home shopping commission fee for survival. This study analyzes the structure of program provider industry. This study indicates that horizontal and vertical integration becomes more popular in big players at both system operator and program provider level.