Got the A1469 model today, updated its software and peer-to-peer working now. Thanks for your help.

Yea sorry I had Gen 2 not sure what i was thinking. You need the latest version Gen 3 Rev A. A1469 – AppleTV3,2 – MD199LL/A. Snippet from Apple support below:

Peer-to-peer AirPlay

With peer-to-peer AirPlay, your iOS device and Apple TV don’t need to be on the same Wi-Fi network. If you have one of these products, you can use peer-to-peer AirPlay:

* iPhone 5 or later, iPad (3rd generation or later), iPad mini, or iPod touch (5th generation) using iOS 8 or later.
* Apple TV (3rd generation rev A, model A1469 or later) with Apple TV software 7.0 or later. Find out which Apple TV model you have.

To use peer-to-peer AirPlay, your iOS device needs to have both Wi-Fi and Bluetooth turned on.

Tnx for the update Dan. I tried it this weekend and discovered my A1427 Apple TV is not capable. Ordered latest model from Apple. LookIng forward to using it in my classes this fall.

Its working now in the the release builds for me with 2nd Gen Apple TV and iPad 4th Gen. Has worked every time I tried it so hopefully its stable and good enough to be in classrooms and meeting rooms! Its a game changer if its stable!

What if you want to user your Wi-Fi for streaming content from the cloud?

Thank you for your reply. Shortly after I posted my comment “the light went on” and I realized Wi-Fi was required to establish the ad- hoc network connection between devices. I will test it this pm and let you know my experience. Thanks again.

You can’t turn off Wi-Fi. This new feature does not require you to connect to a network, but you still need a working WiFi antenna so your iPhone can crete an ad hoc network (same happens with AirDrop, however it uses Bluetooth and AirPlay will probably use WiFi Direct).

Also, since we haven’t tested it yet, we’re not sure whether this feature is present in the current iOS 8 beta or not. Apple TV might need an update, too.