The effective market competition in cultural industries is an important force to promote rational allocation of resources in the cultural industry, to develop prosperous culture, to actively introduce advanced technology and to improve international competitiveness in the cultural industry. Because of lack of awareness to cultural industries, lack of effectively competitive system and policy arrangements that are good to cultural industry, and lack of competition, it leads to the developing scale of cultural industry is small, competition is weak, economic efficiency and efficiency of resource allocation is low, which restricts the better and fast development of cultural industry. Therefore, we should correctly understand and deal with the relationship between reform and development, monopoly and competition, promote arrangements on effective market competition in institution and policy, and ensure to exert the role of market competition.