Sorry to say it, but this is normal for Apple TVs. I've owned a TV2 and a TV3, and neither lasted for an entire year. They are quite fragile and of low quality, and as you can see here, quite fussy even when they work. The wi-fi receiver on these are cheap and unreliable.
Consider the $99 an annual rental fee. They rarely work for a whole year, so if you are going to use the platform, you will have to replace them constantly.
Also, when one dies under warranty, never, never send it to Apple for repair. Go to the Apple Store for replacement. I sent my ATV3 in for warranty repair using a box sent to me by Apple, and although FedEx tracking showed it was accepted by Apple, it was never seen again. Apple won't replace it or even return my calls.
Just to close this out, after many calls to Apple Support, I finally got my case escalated. Apple admitted that they lost my ATV, and replaced it with a new one.
Since they didn't even have the right FedEx tracking number on the return shipping label that THEY supplied, I still can't recommend shipping your ATV to Apple for repair/replacement. Go to an Apple Store.