How come they're free? Well, the official "123Movies" was shutdown back in 2018, so anything you're finding today is just a "clone" site at best or a spam-suppository of viruses more likely. tl;dr - they're free because the stream isn't the product. You (the user) are the product, and you're being sold to third-party advertisers and data-thieves. Legit sites and similar torrent-hosting sites, etc. are usually funded by advertising, donations, and premium services. Most are funded by those annoying pop-ups, video-ads and pop-overs, and get a small percent every time you accidentally click and get redirected to six Malaysian porn websites, also known as "pay-per-click". Google AdSense won't (knowingly) work with piracy sites, but there's other services - like PropellerAds - that have less boundaries about who they're working with. Scummier sites (and this is most of them) will go one step further - "pay-per-install" basically getting a kick-back everything a visitor downloads malware . Some sites will use your CPU without you knowing to mine for crypto using services like Coinhive. Other sites (like IPTorrent) offer premium services if you pay. They obfuscate payments by using crypto or scammy 3rd party "high-risk" payment processors that will "rename" or "recategorize" the payments to evade security checks by major credit cards or authorities. You might've heard of Wirecard , a German "high-risk" payment processor that at one time almost bought out Germany's largest bank (Deustche Bank) until it was uncovered that basically the whole thing was a worthless shell-operation and predominately all facilitating money laundering. How does it work? You didn't actually ask this, but I want to include it because I find the whole industry absolutely fascinating. Most "streaming" sites are just front-end pages. The videos are hosted in a "spider web" fashion across various hosting services all spread throughout the world - predominately in countries that have weak copyright enforcement and that are harder for major copyright enforcement countries/agencies to touch (e.g., US Dept. of Justice). Think of it like this. You have 50 different movies. You create 50 Google Drive accounts. You upload all 50 movies, each to a different account. Your "front-end" website then will embed a video player that links to each Google Drive account you created. Now the piracy-police will need to track down 50 separate accounts. That example is very basic and problematic. Google Drive is a U.S. hosting service. They'll shut it down immediately and turn over the logs to the U.S. DOJ by sunset. So you need to "obfuscate" (hide) what you're doing. You use one-click hosting-services spread throughout the world that don't readily work with the authorities. Megaupload was that service in the 2000s, and RapidShare was its more-friendly cousin. You host the file in multiple places and each click goes to a different random server and/or ran through a VPN so it's hard to track the final source. In the case of 123Movies, the "front-end" was clearly from Vietnam, but files were hosted throughout the world, particularly in Ukraine. Sites also will use reverse-proxy services, like Cloudflare or HAProxy, to basically anonymize the source of the original hosting web server, so to the end user, the IP address that delivers the content looks like the reverse proxy and it's extremely difficult to figure out where the actual file resides. What's the catch? The catch is that you're the product, not the stream. Hosts want to sell your ad-clicks or personal data, or to convince you to donate or buy premium services. That said, there is a whole part and history of the "digital piracy" community that's actually based around the idea of free distribution of digital goods. Actually researching how "warez groups" in the "the Scene" actually compete to be the first to release "zero-day (0-day" warez (movies, music, games, apps, ebooks, etc.) is fascinating. I was active as a teenager back in the 90s and 2000s with a group and would buy PC games at release day, rip the disks, and upload them for someone else to "crack" to get around the anti-piracy features, then return the games. Back then, pre-strict DRM, most of the time it was just a CD key. I'd also rip rental DVDs and kept an FTP server because I had access to a T1 line. I also wasn't jack-shit looking back (???everyone was a member of Razor 1911 right???), but it was really exciting back then just to get a taste of how the warez-scene operated, and watch as releases trickled down from private FTP servers to P2P applications, like Kazaa, to your local flea market dude selling burnt cam-releases next to 80s porn magazines. There was something rewarding about having TBs of content, 95% of it that you'll never use, but just that you're holding onto it. So - there are still hosts and groups that just enjoy the competition of being the first to get their goods out to the public or to offer quality goods without trying to fully monetize the whole thing. But at this point, that's the exception, not the rule. Today, the piracy landscape has completely changed. As more developing countries are accessing the web with high-speed infrastructure, there's a lot of money to be made just by creating a clone-site and spamming your site with advertising and malware, explaining why there's so many shit websites out there that aren't even delivering a product (movie), but are stealing your credit card or ransom-ware bribing you on the backend. And of course (put on the fear-mongering hats), a portion of piracy-revenue is funneled back into organized crime and terrorism. Which is the right URL? I don't want to post to any stream sites, but check out r/Piracy for a megathread that answers this very question.