Hulu eyeing Australian launch as demand for online video surges

American streaming video service Hulu may enter the local media market sooner rather than later, after the site’s international business director flagged Australia as one of the site’s top 10 international targets.

The comments come as a separate Neilson report shows 41% of internet users in Australia are regularly streaming or downloading videos, with 21% of those doing so on a regular basis.

International business development manager Simon Gallagher said at the Media 2010 event in Sydney the success of Hulu in the US has resulted in a lower number of pirated programs where the site is available, and there is no reason to believe it couldn’t have the same effect here.

Hulu is a video streaming service which offers hundreds of films and television shows for free. Currently the site has over 200 content partners, including major television and film studios, which allows it to upload newly released television episodes as soon as they are broadcast.

”Combined, there are more than 70,000 videos and 15,000 hours of total content,” he said.

The site generates revenue through advertising, with much of the ads including an interactive component.

The site itself is a collaboration between Fox and NBC Universal. It has recorded tremendous growth since its launch 2007, with Gallagher claiming it accounts for 1% of web traffic in the US. ”In the US six out of seven internet users now view internet video every month.”

Gallagher claims Hulu recorded 8.5 million unique visitors during January. However, he also highlighted some setbacks for an Australian entry, claiming our lack of broadband infrastructure, advertising rates and the popularity of US television as deterrents.

He also pointed out high broadband costs, and problems with convincing television companies to work together to publish their content on the site.

But new Neilson figures show there would be strong demand for such a service. The company’s 2010 Internet & Technology Report has revealed 44% of regular online video users will increase the amount of streaming video they view in the next 12 months, with 33% also saying they will download more content.

The most popular video downloads were full length television episodes, followed by video clips on sites such as YouTube. Additionally, 25% of respondents said they had downloaded or streamed information and reviews on products.

About 36% said they would pay for video content downloaded from the internet, and 25% would be prepared to pay per view for downloaded or streamed video.

Matt Bruce, managing director of Nielsen Australia online, has said these figures pave the way for massive growth in online video.

“For some time, the digital industry has been aware of the potential for growth of online video content given its popularity in Australia,” he said in a statement. “What this latest data shows us is the true extent of that popularity. For the digital industry, this presents an amazing opportunity to tap into Australians’ growing love of online video content.”