If you're having problems with your Apple TV, if Wi-Fi or connectivity is buggy, if it keeps failing to connect or update, if the channels just don't work the way they're supposed to, then restoring it to factory settings can give you a fresh start. Sure, it's the nuclear option but it will also solve most problems, most of the time. If you're suffering, a factory restore is one of your last, best hopes for salvation!
Full story from the iMore Blog...