Youtube announced today that it has aquired Episodic, which is an online platform for streaming video and monetizing it. The deal was announced on the Episodic blog. So whats this aquisition all about? The company looks like a good way for Youtube to give video providers and content owners, including the major tv and movie studios to make cash from YouTube streams, the worlds biggest (by a mile) online video destination.

Although Hulu is a big success, and have generated $100 million in revenue last year, the content providers are still unhappy. Viacom has pulled the plug on popular shows – The Daily Show and The Colbert Report from Hulu after failing to come to a revenue sharing agreement that was acceptable to a big studio.

Lets Look At Traffic

YouTube has traffic that exists only in Hulu’s dreams. Plus it shows no signs of stopping, with a growth of more than 6% during the last three months alone. Compare this to Hulu who had a 0.9% rise in the same period. For Studios that want to make ends meet in a tough economic climate, where would you go? To where the viewers are of course.

YouTube is now shaking off its amateur image and getting into the serious streaming including movies on demand and catch up tv. But still it needs more tools for video professionals. This is why buying Episodic is a smart move, their technology is designed for the professional broadcasters. Their platform allows for live and on-demand video, monetization, analytics, content syndication, and delivery to mobile platforms. Currently Google negotiates all advertising deaLls individually with each company, now it can give the power to the content providers and offer them their massive audiences, more tools for making money, and a bigger share of revenue.

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