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They usually get dough from cinemas, advertisements, DVDs etc. When a movie is shown in a channel, it's usually already months old and doesn't get much customers in the cinemas anymore so they show it in channels.
Uh, the movies aired on the tv are not at all free. The tv channel not only rents them but it also often pays residuals to the performing actors for every time the movie re-runs.
The channel then gets the money back through ad revenue and rents more stuff to air and it goes around once again.
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