Does the Apple TV need an internet connection?

Yes, you will need to connect to the internet in order to use the Apple TV because it relies on streaming content from other sources like Netflix, Hulu or other content servers, or your Mac, iPad, iPhone or iPod Touch. It can connect either with an Ethernet cable or via Wi-Fi. If you want to use your iPad as a remote or stream movies, music or other content from it via AirPlay, you will need a Wi-Fi connection. Other than that, you just need an HDMI cable to connect your Apple TV to your HDTV.