Apple Event: May 7th at 7 am PT

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Just Bought Apple TV two days ago and says it's only playing in 720p?

I'm still new at this but, we bought Apple TV two days ago and have it all hooked up. In the "general-about" setting it's telling me it's only at 720p. The box says it supports 1080p and my TV is and HDTV 1080p television. We hooked up a Vizio soundbar as well. Could this affect the 1080p res? Thanks!!