Free Apple TV

Not really. It is a new service and it has always been advertised as being for Apple originals. There are currently 16 series and 3 movies, and more content is also added each month. Other services have licensed catalogues on top of originals, however even they didn't have much when they first started. There also isn't any service that allows access to a full marketplace, like iTunes, so to expect that a service that costs $5USD would allow that is a bit unrealistic. Lastly, if one obtained it free for a year then there isn't anything to lose by claiming it as even if one weren't interested now there could be content added within that 12 months that does.

The subscription only covers Apple-original content.

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Apple TV contains a mix of items including those that are free with membership and others that require payment. Most services have 2 levels--1 included and one still a-la-cart.