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In this video, the tutorial introduces the concept of content providers in Android. Each app operates within its own process and maintains private data, making it impossible for one app to directly access another's database. To enable data sharing, the second app must request data from the first app, which exposes its information securely through a content provider. App 2 utilizes an API known as content resolver to access the data from app 1's database. The content provider in app 1 then responds with the requested data in a specific format. This mechanism ensures secure and structured data sharing between apps.