The digital revolution has an enormous impact on media technologies, integration, and convergence. While the Taiwanese government is encouraging the development of digital visual industry, ChungHwa Telecommunications is aggressively entering the new market to form a large conglomerate in both the telecommunications and visual media business, offering multimedia on demand (MOD) services to audiences. This become a major threat to the existing cable system operators. It was asumed that better services and programming would attract audiences and consumers. The purpose of the current study is therefore a comparative case study of the digital services, programming and sources of programming between the new conglomerate ChungHwa Telecommunications and the existing cable television systems. A competitive analysis of ChungHwa Telecommunications' business strategies and expansion of its M.O.D. services, and its attempt to step into the digital visual media business, will be based upon SWOT (Strengths, Weakness, Opportunities, and Threats) and Porter's Model of the Five Forces. Competitive advantages were outlined through a) interviews with, b) secondary data and c) documents on figures and market projection from ChungHwa Telecommunications' administrators. It was found that ChungHwa Telecommunications held an optimistic attitude toward its expansion into the digital visual media business. Key competitive advantages lied in the existing high penetration of telephone household in Taiwan, and ChungHwa's continuous efforts in increasing its ADSL clients, which will play a vital role in promoting and developing its M.O.D. services.