Project build.gradle

allprojects {
    repositories {
        jcenter()
        // Add this if you use Gradle 4.0+
        google()
        // Add this if you use Gradle < 4.0
        maven { url 'https://maven.google.com' }
    }
}

ext {
    archVersion = '1.0.0-alpha5'
}

Application build gradle

// For Lifecycles, LiveData, and ViewModel
compile "android.arch.lifecycle:runtime:$archVersion"
compile "android.arch.lifecycle:extensions:$archVersion"
annotationProcessor "android.arch.lifecycle:compiler:$archVersion"

// For Room
compile "android.arch.persistence.room:runtime:$archVersion"
annotationProcessor "android.arch.persistence.room:compiler:$archVersion"

// For testing Room migrations
testCompile "android.arch.persistence.room:testing:$archVersion"

// For Room RxJava support
compile "android.arch.persistence.room:rxjava2:$archVersion"

Extend your activity from this activity

public abstract class BaseCompatLifecycleActivity extends AppCompatActivity implements LifecycleRegistryOwner {
    // We need this class, because LifecycleActivity extends FragmentActivity not AppCompatActivity

    @NonNull
    private final LifecycleRegistry lifecycleRegistry = new LifecycleRegistry(this);

    @NonNull
    @Override
    public LifecycleRegistry getLifecycle() {
        return lifecycleRegistry;
    }
}

public class BaseViewModel extends ViewModel {
    private static final int TAG_SEGMENT_INDEX = 2;
    private static final int VIDEOS_LIMIT = 100;

    // We save input params here
    private final MutableLiveData<Pair<String, String>> urlWithReferrerLiveData = new MutableLiveData<>();

    // transform specific uri param to "tag"
    private final LiveData<String> currentTagLiveData = Transformations.map(urlWithReferrerLiveData, pair -> {
        Uri uri = Uri.parse(pair.first);
        List<String> segments = uri.getPathSegments();
        if (segments.size() > TAG_SEGMENT_INDEX)
            return segments.get(TAG_SEGMENT_INDEX);
        return null;
    });

    // transform "tag" to videos list
    private final LiveData<List<VideoItem>> videoByTagData = Transformations.switchMap(currentTagLiveData, tag -> contentRepository.getVideoByTag(tag, VIDEOS_LIMIT));

    ContentRepository contentRepository;

    public BaseViewModel() {
        // some inits
    }

    public void setUrlWithReferrer(String url, String referrer) {
        // set value activates observers and transformations
        urlWithReferrerLiveData.setValue(new Pair<>(url, referrer));
    }

    public LiveData<List<VideoItem>> getVideoByTagData() {
        return videoByTagData;
    }
}

Somewhere in UI:

public class VideoActivity extends BaseCompatLifecycleActivity {
    private VideoViewModel viewModel;

    @Override
    protected void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);

        // Get ViewModel
        viewModel = ViewModelProviders.of(this).get(BaseViewModel.class);
        // Add observer
        viewModel.getVideoByTagData().observe(this, data -> {
            // some checks
            adapter.updateData(data);
        });

        ...
        if (savedInstanceState == null) {
            // init loading only at first creation
            // you just set params and 
            viewModel.setUrlWithReferrer(url, referrer);
        }
}

Room require four parts: Database class, DAO classes, Entity classes and Migration classes (now you may use only DDL methods):

Entity classes

// Set custom table name, add indexes
@Entity(tableName = "videos",
        indices = {@Index("title")}
)
public final class VideoItem {
    @PrimaryKey // required
    public long articleId;
    public String title;
    public String url;
}

// Use ForeignKey for setup table relation
@Entity(tableName = "tags",
        indices = {@Index("score"), @Index("videoId"), @Index("value")},
        foreignKeys = @ForeignKey(entity = VideoItem.class,
                parentColumns = "articleId",
                childColumns = "videoId",
                onDelete = ForeignKey.CASCADE)
)
public final class VideoTag {
    @PrimaryKey
    public long id;
    public long videoId;
    public String displayName;
    public String value;
    public double score;
}

DAO classes

@Dao
public interface VideoDao {
    // Create insert with custom conflict strategy
    @Insert(onConflict = OnConflictStrategy.REPLACE)
    void saveVideos(List<VideoItem> videos);

    // Simple update
    @Update
    void updateVideos(VideoItem... videos);

    @Query("DELETE FROM tags WHERE videoId = :videoId")
    void deleteTagsByVideoId(long videoId);

    // Custom query, you may use select/delete here
    @Query("SELECT v.* FROM tags t LEFT JOIN videos v ON v.articleId = t.videoId WHERE t.value = :tag ORDER BY updatedAt DESC LIMIT :limit")
    LiveData<List<VideoItem>> getVideosByTag(String tag, int limit);
}

Database class

// register your entities and DAOs
@Database(entities = {VideoItem.class, VideoTag.class}, version = 2)
public abstract class ContentDatabase extends RoomDatabase {
    public abstract VideoDao videoDao();
}

Migrations

public final class Migrations {
    private static final Migration MIGRATION_1_2 = new Migration(1, 2) {
        @Override
        public void migrate(SupportSQLiteDatabase database) {
            final String[] sqlQueries = {
                    "CREATE TABLE IF NOT EXISTS `tags` (`id` INTEGER PRIMARY KEY AUTOINCREMENT," +
                            " `videoId` INTEGER, `displayName` TEXT, `value` TEXT, `score` REAL," +
                            " FOREIGN KEY(`videoId`) REFERENCES `videos`(`articleId`)" +
                            " ON UPDATE NO ACTION ON DELETE CASCADE )",
                    "CREATE  INDEX `index_tags_score` ON `tags` (`score`)",
                    "CREATE  INDEX `index_tags_videoId` ON `tags` (`videoId`)"};
            for (String query : sqlQueries) {
                database.execSQL(query);
            }
        }
    };

    public static final Migration[] ALL = {MIGRATION_1_2};

    private Migrations() {
    }
}

---

Use in Application class or provide via Dagger

ContentDatabase provideContentDatabase() {
    return Room.databaseBuilder(context, ContentDatabase.class, "data.db")
            .addMigrations(Migrations.ALL).build();
}

Write your repository:

public final class ContentRepository {
    private final ContentDatabase db;
    private final VideoDao videoDao;

    public ContentRepository(ContentDatabase contentDatabase, VideoDao videoDao) {
        this.db = contentDatabase;
        this.videoDao = videoDao;
    }

    public LiveData<List<VideoItem>> getVideoByTag(@Nullable String tag, int limit) {
        // you may fetch from network, save to database
        ....
        return videoDao.getVideosByTag(tag, limit);
    }
}

Use in ViewModel:

ContentRepository contentRepository = ...;
contentRepository.getVideoByTag(tag, limit);

You may write custom LiveData, if you need custom logic.
Don't write custom class, if you only need to transform data (use Transformations class)

public class LocationLiveData extends LiveData<Location> {
    private LocationManager locationManager;
    
    private LocationListener listener = new LocationListener() {
        @Override
        public void onLocationChanged(Location location) {
            setValue(location);
        }

        @Override
        public void onStatusChanged(String provider, int status, Bundle extras) {
            // Do something
        }

        @Override
        public void onProviderEnabled(String provider) {
            // Do something
        }

        @Override
        public void onProviderDisabled(String provider) {
            // Do something
        }
    };

    public LocationLiveData(Context context) {
        locationManager = (LocationManager) context.getSystemService(Context.LOCATION_SERVICE);
    }

    @Override
    protected void onActive() {
        // We have observers, start working
        locationManager.requestLocationUpdates(LocationManager.GPS_PROVIDER, 0, 0, listener);
    }

    @Override
    protected void onInactive() {
        // We have no observers, stop working
        locationManager.removeUpdates(listener);
    }
}

Each UI component lifecycle changed as shown at image. You may create component, that will be notified on lifecycle state change:

public class MyLocationListener implements LifecycleObserver {
    private boolean enabled = false;
    private Lifecycle lifecycle;
    public MyLocationListener(Context context, Lifecycle lifecycle, Callback callback) {
       ...
    }

    @OnLifecycleEvent(Lifecycle.Event.ON_START)
    void start() {
        if (enabled) {
           // connect
        }
    }

    public void enable() {
        enabled = true;
        if (lifecycle.getState().isAtLeast(STARTED)) {
            // connect if not connected
        }
    }

    @OnLifecycleEvent(Lifecycle.Event.ON_STOP)
    void stop() {
        // disconnect if connected
    }
}