Gilgamesh wrote:Roku is primarily an internet streaming device. It has a somewhat limited ability to stream local content due primarily to some quite creative developers. If you are planing on streaming local content as the primary function the no Roku is really the right device for you.
Also, you'll need internet access to do the initial setup. The device won't be usable at all until you do this. But, notwithstanding the advice Gilgamesh provided, either Roku could access locally streamed content in the formats Roku supports. Be aware that the stick is not USB, it is HDMI (specifically an MHL HDMI device). It does not support USB thumb or external hard drives. The Roku 3 would support a USB storage device, as well streaming options.