From the official Gotye web site:
The visuals for our live performances of What Do You Want? were created by an incredible animator from Australia called Lucinda Schreiber. Created with coloured paper and stop-time animation techniques, it’s a beautiful piece, hope you enjoy.
The song is from Gotye’s 2003 debut album Boardface. Musically it’s not quite the earworm that Somebody That I Used to Know is, but then, that’s like saying that mint tea isn’t quite the calmative that heroin is. It’s a cute video that makes me think of the Land of the Dead musical scenes from Corpse Bride, and the gripe I had about its somewhat repetitive nature is obviated by the fact that it’s meant to be shown on a screen behind a band playing the actual song.