What is the privacy policy of Home Sharing? Why does it require an AppleID?

Do devices using Home Sharing upload any usage information--or for that matter, any data at all--about the files being shared, or the libraries to which they have access? Why is an AppleID required, rather than, for instance, any made-up shared key, the way the Windows Homegroup works?

Please see my post above.
As far as I can fathom...Apple TV needs permanent Internet connection else it stops. Whilst it may not actively use the connection 100% of time whilst playing (although I do not know this for sure) as soon az the internet goes down so does the Home Sharing and as Apple TV is reliant on Home Sharing and willonly share content via Home Sharing then Apple TV needs permanent Internet.
Also cannot even turn on Apple TV unless it is connected to the network and this does not mean Wifi only it means Wifi with internet sharing turned on.
No one has been able to tell me how they run Apple TV without permanent internet connection.
No one has been able to tell me how they start Apple TV without internet connection.
No one has been able to tell me how, once Apple TV up and running and internet drops out, how they maintain the Apple TV connection.
Again I ask why does Apple TV need a Permanent Internet Connection?

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