How Do Free Movie Streaming Sites Generate Revenue?

There are a lot of options available in the market while one is looking for movie streaming sites and platforms. OTT platforms are over-the-top platforms that display videos, films, and television shows for users and some of the most common OTT providers are Netflix, Amazon Prime Video, and Hulu.

While most of the platforms and websites the user goes through are paid and subscription-based, there are some free options too for people who don’t want to spend anything other than their internet data to stream videos. Therefore, we will be discussing the source and method of revenue generation for these free movie streaming sites.

Free movies or shows streaming sites really save a lot of our money and they are surely a gift for the users. At present, when movies and shows are being released on OTT platforms majorly due to COVID situations, the price of purchasing subscriptions and even specific shows or movies have surged significantly. This gives rise to the need of having free platforms to watch your desired TV show or movie.

Unlike a couple of decades ago when people were solely dependent on theatres and TV channels to watch their favorite movies, there are various free movie streaming platforms today. These free movie streaming sites allow their users to watch over thousands of movies and TV shows on their platform without charging a single penny.

Well, here comes the major question, how do these sites earn revenue and manage to provide their services to the users for free. Before moving further in our article, let’s first of all discuss the legalities of these websites.

Are These Free Movie Streaming Sites Legal?

People often question the legal structure and status of these free websites and lay an emphasis on the working of these sites, and chances of themselves getting caught for watching movies on these sites.

Well, it should be noted that the very first thing these sites do is never host their own content, with some of the websites acting as search engines for links to streamed content. That’s why when you click on the play button, the site redirects to another website and requests the desired file from the second website.

If we go strictly through the copyright laws, it can be seen that even downloading a small part of a file the rights of which are not shared with you, is called pseudo-streaming. In addition to this, if you stream content that is displayed to a significant number of people apart from the normal family circle, it comes under the category of violation of copyright law.

Here is the catch, if you are just streaming the content and letting it go after that, you are making use of a legal service for you, however, if you are sharing the copyright material, you will encounter some troubles.

How do these Websites make Money?

Nothing really comes for free, and hence, these websites are also not doing charity, they are earning some shekels for providing us with our desired content. Their revenue comes from running two kinds of advertisements on their platform, one is the website ads, the second is the video advertisements that are streamed during the course of the video.

The advertisements that run on the website are generally visible on the actual pages and sometimes, they become available in forms of pop ups. As for the in-video ads, there are different methods to stuff these ads in a video. For example, some websites pause the video to run the advertisement.

Though the fact that these advertisements are sometimes very irritating and annoying when you are enjoying the movie, you are getting to watch the movie for free and the frequent little halts in your streaming is the price you pay for watching the movie.

How Much Money can these Websites Make?

Let’s know how profitable this business is;

Suppose the website is able to attract 10 million users per year, not all the people will end up watching a film, so let’s take 5% of the total guests as an estimation of people watching the video, that equals to 500,000.

Moving further, 2% of the 500,000 visitors click on the advertisements displayed by the website, which are around 3-4 advertisements per film, constituting a revenue per film of $1. With some mathematical calculations involved in the process of finalizing the profit, the net revenue of these websites manages to touch the levels of millions of dollars.

If you are thinking of owning a streaming site business, it is certain that if all conditions are met, you will end up making notable profits from this business. All you have to do is ensure that you have the audience that can benefit from your movie streaming platform.

Theo Gill
Thoe Gill is a content writer who specializes in SEO-friendly, keyword rich, persuasive copy. With over 10 years of experience writing for the web, Thoe has an uncanny ability to create content that sells. With expertise in digital marketing and website management, he knows how to get your company found online. He understands the importance of creating engaging content that will keep readers hooked on your site all day long.

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