How “Free Movie” Sites Make Money

Free movie sites, such as the famous 123movies.go, are the bane of large Hollywood studios, and the savior of all of those individuals and families who can’t afford, or don’t want to pay highly inflated prices for, their entertainment on any given night. However, those free money sites themselves must be pulling in a profit in order to be worth running, so the question must be asked: Where does that money come from?

How Do Free Streaming Sites Work?

Free streaming sites avoid legal battles (usually) through not hosting their own content. Websites act as a search engine to connect users with links to streamed content that comes from a secondary website. This second website is where the video stream comes from when a user presses that big green PLAY button on their screen. In doing so, the free streaming site avoids legal troubles because the video itself is never actually posted to their website.

This process is known as file-sharing, because the file is shared from the second website to your computer under the guise of being the first website.

So…Where Is The Money?

Free streaming websites need to make money too, as there is equipment to maintain and at least a small staff of video moderators and file uploaders to pay. Someone has to cover those costs. That someone is usually a company paying for advertisements.

Depending on the streaming site, these ads will be placed in one or both of two ways: website ads placed around the site; and ads embedded in the videos themselves. In the latter case, the video will stop playing at a predetermined point, the ad will play, and then the video will resume. Free streaming sites, as most online sites, bring in money through outside advertisements. 123movies.go is an example of a site that allows advertisements to run through the video stream – while this may be annoying to some users, the benefits of not paying $20 per movie to purchase (or $100 per month for a collection of streaming sites to cover all their interests) are often worth it.