In stream programming there are two main interfaces: Observable and Observer.

Observable is for the consumer, it can be transformed and subscribed:

observable.map(x => ...).filter(x => ...).subscribe(x => ...)

Observer is the interface which is used to feed an observable source:

observer.next(newItem)

We can create new Observable with an Observer:

var observable = Observable.create(observer => { 
    observer.next('first'); 
    observer.next('second'); 
    ... 
});
observable.map(x => ...).filter(x => ...).subscribe(x => ...)

Or, we can use a Subject which implements both the Observable and the Observer interfaces:

var source = new Subject();
source.map(x => ...).filter(x => ...).subscribe(x => ...)
source.next('first')
source.next('second')

Observables are unicast by design and Subjects are multicast by design.

if you look at the below example - each subscription receives the different values as observables developed as unicast by design.

import {Observable} from 'rxjs';

let obs = Observable.create(observer=>{
   observer.next(Math.random());
})

obs.subscribe(res=>{
  console.log('subscription a :', res); //subscription a :0.2859800202682865
});

obs.subscribe(res=>{
  console.log('subscription b :', res); //subscription b :0.694302021731573
});

this could be weird if you are expecting the same values on both the subscription.

we can overcome this issue using Subjects. Subjects is similar to event-emitter and it does not invoke for each subscription. consider the below example.

import {Subject} from 'rxjs';

let obs = new Subject();

obs.subscribe(res=>{
  console.log('subscription a :', res); // subscription a : 0.91767565496093
});

obs.subscribe(res=>{
  console.log('subscription b :', res);// subscription b : 0.91767565496093
});

obs.next(Math.random());

both the subscription are got the same output value!.

Observables

1. They are cold: Code gets executed when they have at least a single observer.

2. Creates copy of data: Observable creates copy of data for each observer.

3. Uni-directional: Observer can not assign value to observable(origin/master).

4. The code will run for each observer . If its a HTTP call, it gets called for each observer.

5. if its a service we want to share among all the components, it wont have latest result all new subscribers will still subscribe to same observable and get value from scratch

6. Unicast means can emit values from the observable not from any other component.

Subject

1. They are hot: code gets executed and value gets broadcast even if there is no observer.

2. Shares data: Same data get shared between all observers.

3. bi-directional: Observer can assign value to observable(origin/master).

4. If are using using subject then you miss all the values that are broadcast before creation of observer. So here comes Replay Subject

5. multicast, can cast values to multiple subscribers and can act as both subscribers and emmitter