Currently Being ModeratedFeb 10, 2012 6:25 PM (in response to davefromport moody)
There should not be any internet bandiwdth used if you are in fact only streaming off the local network. Verify there are no other background processes occuring on the network that would explain this.
Also check out interference and that your network is secure.
Currently Being ModeratedFeb 10, 2012 6:32 PM (in response to davefromport moody)
I have no solution for you but I can tell you that I don't see this on my Apple TV (2) and I've even tried to force or duplicate this problem (trying all kinds of streaming combinations, from iTunes, using AirPlay, using my iPad with Airplay, etc.). Under those conditions when I monitor the traffic on my DSL modem/router I see almost zero use of upstream or downstream bandwidth over the internet.
However, if I stream using iCloud on my Apple TV the internet usage does up immediately and is quite noticeable (comfirming that I am correctly monitoring/measuring my true internet traffic).
Currently Being ModeratedFeb 10, 2012 7:04 PM (in response to davefromport moody)
Okay, try this simple test. Disconnect your modem/router from the internet (i.e. unplug the coax cable or phone line) and then see if you can access your music on the Apple TV (under the "Computers" menu). If the music and videos still work then that indicates that you aren't streaming that content using iCloud or iTunes Match.
However, if it doesn't work (can't access content) then that proves that you are indeed (somehow) streaming from the internet. In this case I'd check to make certain that ALL of the content you are trying to access is PHYSICALLY stored on you local Mac/PC and that the content is reachable via the iTunes app running on that same Mac/PC. If it is then next I'd do a factory restore on the Apple TV and then see what happens.