Google Hopes to Monetize YouTube With Episodic Buy

Online video platform developer Episodic is the latest company to be taken over by Google Inc. (GOOG).

Google owns YouTube and, observers say, the Episodic transaction may be just the push Google needs to monetize the popular video site, thanks to Episodic’s relevant technologies.

The deal comes as Google rival Apple Inc. (AAPL) has released the iPad. The device will only create more demand for streaming Internet video, so the timing is right for Google to attack YouTube’s ability to make money. How that will happen remains a bit of a mystery.

Google and Episodic did not disclose the financial terms of their deal. The Episodic acquisition marks Google’s fifth so far this year.

In an April 2 blog, Episodic co-founders Noam Lovinsky and Matias Cudich wrote that they are “extremely excited about this new partnership and what it means for our customers and the evolution of online video.” Episodic’s employees will become part of Google and “work to bring a great video experience to the Web, mobile phones and IPTV devices. There will be no interruption in service for existing Episodic customers,” they added.

As for why Google and Episodic teamed now, here’s the answer from Lovinsky and Cudich: “At Episodic, we have always felt that these are the very early days of online video and that there is far more growth to be had. To put it in perspective, our industry is barely 15 years old. We’ve just received our learner’s permit, we still can’t drive without adult supervision and we’re certainly not old enough to buy a drink … legally.”