Q: When new the Apple TV worked well but now it keeps on dropping out of my wifi network. It seems to be getting worse!

Morning Margaret267,

Thanks for using Apple Support Communities.

When connecting to an Apple TV, you may occasionally encounter intermittent disconnects or connectivity issues.

For more information on this, take a look at this article:

Apple TV (2nd and 3rd generation): Troubleshooting Wi-Fi networks and connections

http://support.apple.com/kb/TS4546

Best of luck,

Mario