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disolitude said:

Does one even need to ask this? It Google...this is worthless to them unless its connected to the internet.

It absolutely needs WiFi to work.

Here is an idea though for anyone that gets it. Create internal only wifi network with no outside internet connection and connect this device to it. See if you are able to stream without "internet" and that way you may be able to shaft Google ads and tracking in the process.

This is just a pass-through device.  They'll make a killing on the hardware as its no where near $35 to create. Plus its a beach head device for their future cable TV service (see Google Fiber) when it rolls out.