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How does Putlocker make money?

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Quick Answer

Putlocker, an online company that offers a "cyberlocker" service or video hosting, receives most of its revenue from advertising or charging for premium access to its videos. Putlocker's business model depends upon providing viewers unlimited access to videos that are streamed over the Internet. The company then gains revenue from advertisements that appear before these videos unless the viewer opts for a premium account. Thus, Putlocker utilizes a combination of the advertising and subscription models.

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However, Putlocker has been criticized for condoning copyright infringement on the company's servers. The entertainment industry represented by the MPAA accuses Putlocker of not paying the copyright holder any fees for use of hosted material and claims that much of its income may have been attained illegally. By not negotiating copyright fees and licenses, Putlocker is able to achieve a profit and provide free services without having to deal with the accompanying expenses that more legitimate competitors may face.

Putlocker disputes these claims and points to cloud storage, the hosting of large video files online, as the main source of its income. Furthermore, the company argues that its revenue streams are fully legitimate and that it does indeed cooperate with copyright holders to remove contested material.

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