Internet. In addition to paid content from iTunes where you can rent or buy movies and TV episodes, Free and paid or subscription content comes from Apple through A&E, ABC, ABC News, ACC Sports, AOL On, Apple Events, Bloomberg, CBS News, CBS Sports, CNBC, CNNgo, Crackle, Computers, Crunchyroll, Dailymotion, Disney, Disney Junior, Disney XD, ESPN, Feeln, Flickr, FOX NOW, Fusion, FX NOW, FYI, HBO GO, HBO NOW, History, Hulu Plus, iCloud Photos, iMovie Theater, iTunes Festival, iTunes Radio, KORTV, Lifetime, MLB.TV, MLS, Movies, Music, NatGeo TV, NBA, NBC Sports Live Extra, Netflix, NFL, NHL, 120 Sports, PBS, PBS Kids, Podcasts, Qello, Radio, Red Bull TV, Showtime, Showtime Anytime, Smithsonian Channel, Sky News, Tastemade, TED, Tennis Channel Everywhere, The Beatles, The Scene, Trailers, TV Shows, UFC, USA NOW, Vevo, Vimeo, Weather Channel, Willow, WSJ Live, WWE Network, Yahoo Screen, Young Hollywood and YouTube.
You can also stream your own ripped movies from an iPhone, iPad, or Apple Mac. . . or a dedicated server.
I looked at the Apple information and they also offer apps such as Watch ESPN and NBC Sports Live Extra, which still require a subscription through a cable or satellite provider on Android devices (must enter cable or satellite provider in app to view content). Cable and satellite companies wouldn't be too happy if Apple swung a deal to offer such content directly through Apple TV.