Q: does the ir have to be in sight of the remote

While the remote has good range it is infra red not wireless and as such any obstruction to the IR signal will prevent it working.

If you have an iPhone/iPad/iPod Touch take a look at Apple's free Remote app to control the unit.

AC

It's IR, but, in my experience, it bounces pretty well off of walls and ceilings. It is usually possible to mount an Apple TV behind or on the back of a TV and point the remote at the ceiling or at the wall just above the TV. I just mounted a small TV in our kitchen and stuck (Velcro'd) an Apple TV on the back of it. Pointing the Apple TV remote anywhere over or beside or below the TV works.

But you obviously can't box it in. You have to give it a plausible path for the signal to bounce.

John

Occasionally it will work through the bed covers for me.

Sometimes the Apple Remote is a bit too flexible. I just added a Mac mini (Late 2012) to my treadmill room (man cave). It already had a TV connected to an Apple TV high on a shelf in a recessed area in front of my treadmill. Now there is a desk off to the side with a Mac mini on a shelf out of direct line of sight from my hands when I'm running. But I've had to turn off the IR receiver on the Mac because it'll start up Plex or another media player when it intercepts a signal from the Apple Remote that I've directed to the Apple TV. The signal appears to be bouncing off of 2 walls to find the front of the Mac. (If I get a second remote for the Mac, I could pair one with each and eliminate the problem.)