Both, depending on what add-ons you have activated. When you don't have any activated, it relies on local indexing. On the other hand, the default add-ons sug

Both, depending on what add-ons you have activated. When you don't have any activated, it relies on local indexing. On the other hand, the default add-ons suggest to you links to iTunes/Netflix/etc. There are third-party add-ons that use torrents, those can be shown in the product if they are popular in your area.