So add another one with this problem to the list. I live in Santa Fe, NM and have internet service with Xfinity with a speed of 40 mbps. The apple tv is hooked up via ethernet cable to my router. Our apple tv (3rd gen) begin to have problems with Netflix right after the update 6.0.2. The resolution is horrible. I played the Netflix test video and it never broke over 700 kps and mostly played at 256 kps. I don't buy any video through the itunes store, so my experience on the apple tv is only with Netflix, the PBS channel, Vevo, YouTube and The Weather Channel. All of those besides Netflix, stream in HD with no problems. I am thinking that the problem is a combination of the apple tv update and the Netflix update which happened very close to each other. I hooked up the ethernet cable back up to my Samsung smart TV, and I don't have any problems streaming any video in HD. On the Samsung the Netflix video looks fantastic. Also, in our playlist of 236 titles, I have found three titles that won't even load. The thumnail is there, and when you select it, an error comes up about having trouble playing this title, it recommends to try again later. These titles havn't been able to play for the last week. They play fine on my PC, my iphone and the ipad. I have removed them from the playlist on the pc and then readded them, but they will still not play and I get the same error through the Netflix app on the apple tv. The titles that won't play are, Leave it Beaver (the original series) Wings (the NBC tv series from the 90's) and Cartoon Networks "Original Show"
BTW, this is NOT a time of day issue for me. It looks horrible at anytime of the day.
This is in response to DustyStorm, Yes, I have had that same problem,
"Another thing I've noted is that while streaming Netflix or tv shows purchased on the iTunes store, if I hit pause and shortly after resumed play, the content will fast forward with the audio playing out of sync. If I hit pause again to stop this, ATV wouldn't respond to the command. I would have to repeatedly hit pause and menu to make the fast forwarding stop. After a few repeated pressings of all the buttons on my ATV remote, the fast forwarding would stop then I would have to rewind back to the spot I was, hit play, and all would be well except that then the HD would come and go or just stay at a lower definition.
Has anyone have this happened to you?"
Yes!
If I pause the video for a few minutes, when I unpause it, the audio will be in normal speed, but the video begins fast forwarding. I have to try to exit the video and then reload it for it to restart in the normal speed with the audio synced up.