Communications report 2011-12 series report 1- online video content services in Australia latest developments in the supply and use of professionally produced online video services

This report provides a timely overview of the commercial online video content market in Australia.Changing consumer and audience preferences are driving fundamental changes in how content is delivered by communications providers in Australia. The growth in online participation is disruptive, presenting both a challenge and opportunity to industry. This growth confirms that many Australians now access the internet and spend significant amounts of their time online—6.4 million Australian adults (36 per cent of those aged 18 years and over) spent more than 15 hours a week online at June 2012. The rise of affordable, higher speed internet has encouraged and enabled user demand for viewing content, buying products and having services delivered online, as a key part of marketing and business strategies. This greatly extends the usage of the internet beyond its historical driver as a provider of communications (mainly email) and information. The development of the professionally-produced online video content (OVC) service market in Australia is a key example that demonstrates how the internet is forcing the evolution of existing approaches to service delivery. This increased development of internet-distribution channels for meeting viewer demand is likely to continue, and this could pose challenges to existing content regulations, which were developed primarily for traditional broadcasting transmission