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is it just bluetooth? do i need an app?
It can work over Bluetooth or WiFi depending upon the device you're streaming to. You don't need an app, the devices you can stream to will show up in list when you touch the airplay icon.
AirPlay is specifically a wifi capability, distinct from Bluetooth. It allows you to stream to a Sonos, as well as anything with AirPlay capability like a B&W Zeppelin, for example. Pioneer do AirPlay, as do many others.
Go on strictly speaking airplay in Apple speak is media streaming over wifi, but its just semantics. I use airplay to stream to a bluetooth dongle on my iPod docking station, and a bluetooth dongle in my car to stream music to my car stereo - you use the airplay icon to select the bluetooth device just as you do when you stream to airplay wifi devices. It all depends on the device you're streaming to. When you see devices in the shop with the Airplay logo, they refer to airplay over wifi, so from a strict marketing perspective airplay is streaming over wifi, but in reality all you're doing is streaming media content without the use of wires.