Thanks for confirming. The internet speed is the reason, that is a very slow connection relative to streaming/downloading video. A full length movie, especially in HD, could be 5+ gb. Netflix recommends at least a 20mb connection speed for getting HD streaming video. You can use a lower connection, but it will be slow, and prone to buffering/pixelation.
You may get some improvement by connecting the appletv to the router directly via ethernet, but the overall speed from your ISP will still be the bottleneck. You may want to contact them about upgrading your connection.
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