X1 TV is streaming TV

Is X1 TV an internet streaming TV service?  Traditionally, your TV will work without internet.  I have a DVR box so I would expect it to have local storage and have the ability to watch TV without internet.  However, I had an internet outage and the TV was unable to do anything.  The DVR box literally could not show a single live channel let alone be able to access recorded shows.  The DVR box did nothing!

What is the point of even having a TV box?  Why would I keep the X1 service as opposed to any other streaming TV experience that does not have ads galore?