The most common/well-know kind don’t actually host the content itself, just lightweight address books that point to the content (torrents). Of course, hosting the website itself and the list of torrents still take some resources, but it’s probably way less than you think.
This small bit is usually paid for through donations and ads, though. People enjoy good quality content providers and some are happy to fund part of it. Since the content itself isn’t really hosted by those sites, they kind of skirt the edge of legality and avoid being taken down/prosecuted, so being a supporter isn’t an automatic complicity in illegality.
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