The purpose of the study is to analyze the importance of the technology transformation and impact on broadcast TV industry as the result of Smart TV development. The study starts with analysis on traditional broadcast TV industry structure and competitiveness analysis to determine the important characteristics of current broadcast TV industry. The technology enablers behind Smart TV transformation are discussed based on industrial transformation theory. The study further analyzes the new industrial structure and eco-system of Smart TV, and the impact to cable operators as the result of platform envelopment. Suggestions to incumbents and new entrants in response of Smart TV development will be provided in the study based on the analysis of the strengths and weaknesses of each individual market participant.