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In this video tutorial, the speaker introduces the concept of content providers in Android. In the Android operating system, each app operates within its own process, each maintaining its own private data, such as databases. This creates a limitation where one app cannot directly access another app's data. To facilitate secure data sharing, the content provider component is introduced. When App 2 needs to access data from App 1's database, it uses an API called content resolver to request the data. App 1's content provider then responds to this request, providing the data in a defined format. This mechanism ensures secure data exchange between apps while maintaining data privacy.