In snapshot version 13w47c, there was a similar bug showing a wrong error message. Now however a different (and still wrong) error message is shown.
Minecraft tells me I need to start it in online mode to be able to stream, while I HAVE started it in online mode.
(Could relate to https://mojang.atlassian.net/browse/MC-40529)
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As I wrote, it relates to https://mojang.atlassian.net/browse/MC-40529, but after now 2 snapshots, it's a different wrong message. So actually a new error on it's own.
Error message is incorrect, 10.8 or higher required to stream.