I live in Italy and I noticed that by setting the PAL video output (50hz) from the screensaver to Netflix content, Prime Video etc. they have numerous microshots.
What are microshots?
By setting SECAM (60hz) you can see well. If I'm in Europe and set the PAL, why does it work so badly? Should I set SECAM even if it is aimed for the American market?
The settings is about communicating for the Apple TV box with your TV. If you have a PAL TV, then prefer PAL compatible settings. If you have an NTSC TV, then prefer NTSC compatible settings. If you have a SECAM TV, then prefer SECAM compatible settings.
➤ By the way, NTSC is 60 Hz. SECAM is 50 Hz, like PAL.
The standards for NTSC, PAL, and SECAM are specifications for analogue video. For digital displays, only the frame rate part matters; other parts of the specifications do not apply for digital video. The video signal for digital video is YCbCr for all variants. Italy is a PAL country, so 50 Hz would make the most sense as video setting there, if the TV is bought there, especially for nationally sourced content (25 fps).
Most modern TVs can process both 50 Hz and 60 Hz just fine, as well as other frame rates (23.976/24 Hz, 25 Hz, 29.97/30 Hz, 48 Hz) for input. Try out both 50 and 60 Hz to see what works best for you. The issue is mostly historical.
Apple TV has a setting for Match Content: Match Frame Rate, which would send content in its original source frame rate to the TV, overriding the Hz setting for Video Format — so that the TV can do its post-processing (frame duplication or interpolation) to its own native refresh rate (Hz) without intermediate step from Apple TV. [Although that can introduce new issues for select apps that have parts at different frame rate within the same stream (e.g. ads).]