Does AirFly produce audio lag or "latency"?

If you’re watching a movie, AirFly won't create a noticeable lag. AirFly uses the newest Bluetooth protocols (Bluetooth 4.0), which make latency almost non-existent.

Please note that Bluetooth is never perfect because it is a wireless connection (versus a wired connection), however any latency we’ve experienced has been so small as to be insignificant. 

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