Does this simply play local media through XBMC or will it play add on channels also?
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Depends on the format. Some sources work fine, some doesn't.
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Many of those channels use streaming methods that are incompatible with CCast at this point in time. It's a good bet that if the streams require an external player ext in Chrome to play, they will not work on the CCast since it has no ability to add extensions to it's limited Chrome implementation.
Many of those channels are available freely on the web and may even be made available in Real Player as channels. (Not sure I don't have Real Player installed) so that might be the way to see that content on CCast.
Unfortunately it is not likely that something like Plex that has transcoding will be able to transcode those files due to the fact that they are streams and not files and Transcoders don't like to wait around for input.
Me personally while I like the channel capabilities in XBMC and Plex I would much rather the content providers support CCast in their own Apps which most have available because then when they change their system for storage their App will change to reflect that as opposed to jst stop working which is common with Channels on Plex and XBMC,
OH and for the record I'm not sure but it seems very likely that the OP was referring to XBMC for Android not XBMC for other Operating systems as far as local content is concerned.
And while it may be true the fact is aVia should be able to see the same files XBMC Android can see on the device and since XBMC does not transcode at all you really not gaining anything other than the importing of the XBMC library to make navigation easier.