Once the center of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. The Soviet Union's collapse in 1991 and Austria's entry into the European Union in 1995 have altered the meaning of this neutrality. A prosperous, democratic country, Austria entered the EU Economic and Monetary Union in 1999.

Austria's public broadcaster ORF was the main broadcast source until commercial radio and television service was introduced in the 1990's. The Austrian television and radio landscape is characterized by the strong market position of the public service broadcaster ORF, a high availability of foreign television channels, and a large number of cable-and satellite-connected households. Over 90 percent of all households receive their television signal by cable or satellite.

Daily newspapers are highly popular in Austria. More than 2 million copies of papers are printed every day for a population of approximately 8 million people. The print media market is dominated by the free independent newspaper Heute and Neue Kronenzeitung, a leading Austrian daily newspaper. There are an additional 15 local and regional daily newspapers across the country. Austria has over three million internet hosts and more than 6 million internet users. Computer access is widespread.