I was an Apple TV early adopter back in the day when the Apple TV had an actual hard drive in it. With the latest version of the Apple TV, I have found that it takes a lot longer for movies and tv shows to start playing. It is often that a video will buffer for a while which interrupts our viewing. The Apple TV no longer has a hard drive inside for storing content. It has a small amount of storage that it uses as a buffer to keep your content playing smoothly. The problem these days is that movies and tv shows stream in HD and those HD files are quite large. On top of that, we have multiple devices that are connected to our Wifi network which makes the router work harder to transmit the signal the Apple TV needs to stream content uninterrupted.
Due to the layout of our previous home, it was easier to connect the Apple TV over Wifi. We could not get our cable internet modem or router close enough to the TV to connect the Apple TV by ethernet cable. About 6 months ago, we moved and I decided to place the cable modem and router behind the tv. We instantly had the same issues as before with buffering and the Apple TV becoming disconnected from the Wifi signal. This prompted me to just plug the Apple TV in directly to the router using an ethernet cable.
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