With 'Contributor,' Google Is Experimenting To See What Other Ways It Can Make Money
Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) rarely shies away from surprising the Street with its innovations, be it in technology or in the way it generates revenues. By launching "Contributor," a subscription service through which subscribers can avoid seeing ads on certain sites by paying a monthly fee, it has yet again surprised the Street.
CNBC's Bertha Coombs and CNET's Senior Editor, Bridget Carey, were recently seen discussing how this new service from Google will work and whether this service will make a dent on Google's advertising revenue.
"Well, it seems like Google has invented its own version of an ad-blocker," Carey said. "With this all you have to do is pay $1 to $3 a month to Google and with contributing sites that you visit, a piece of that subscription goes to that site. So, right now about 10 websites are testing this partnership with Google including Mashable and The Onion."
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Carey revealed that once a subscribers goes to the sites with which Google is partnering, he or she will see a "pixelated block that says -- Thank You for paying instead of having to see ads."
Coombs was concerned regarding what this service will do for Google since the company drives most of its revenues from advertising, to which Carey replied, "I know it's surprising when they make most of their money from advertising, but you have to think of this as Google experimenting to see what other ways they can make money before someone else comes along and tries to mix things up in opposition to Google."
Google was recently trading at $547.65, up 0.72 percent.
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