With the lifting of Taiwan's martial law in 1988, the newspaper industry in Taiwan faced three types of competition in the past decade. Firstly, the legalization of cable television in 1993 brought more than five 24-hour news channels to the market, which caused a lot of people to rely on television instead of newspapers for their news. Secondly, the emergence of electronic newspapers also changed the reading habits of the public, which threatened the advertising income of the newspaper industry in Taiwan. Thirdly, the Hong-Kong based newspaper, the Apple Daily, began its operation in Taiwan's market starting June 2003, which directly altered the market structure of Taiwan's newspaper industry. Using industrial organization theory as the theoretical framework, this study attempts to understand the relationship between market competition and content diversity in Taiwan's newspaper industry. The method of content analysis was adopted to investigate how content diversity of newspapers varies with the three types of competition mentioned above. The detailed findings are discussed in the paper.
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