The contrast between Taiwan’s crippled film industry and its impressive record in international film festivals led to divergent explanations. This study uses the measure of market share and among others (including box office records of movies, distribution companies, and theaters) to analyze Taiwan’s film industry in the 1990s. Central to the research findings is that a large measure of film market share previously held by the Hong Kong productions was taken over by those of Hollywood production in the 1990s. Furthermore, key sectors of Taiwan’s local film industry including production, distribution, and exhibition has been highly concentrated. Last but not the least, this study shows that major film distribution companies in Taiwan have abused their power to maintain an oligopoly market which was turned to the advantage of the imported Hollywood films.