Welcome to the Apple Community Kealy.
It may or may not be connected to the network, but it isn't connected to the internet.
What address does it have, did you notice anything else peculiar when setting it up.
Try the following steps, check whether things are working after each step where appropriate, before trying the next.
- Restart the Apple TV (Settings > General > Restart).
- Restart the Apple TV by removing ALL the cables for 30 seconds.
- Restart your router. (Also try removing it’s power cord for at least 30 seconds)
- Reset the Apple TV (Settings > General > Reset > Reset all settings)
- Restore the Apple TV (Settings > General > Reset > Restore)
I had the same issues, but this KB Article helped me:
In short: Configure your ATV network settings mannualy, do a restart and everything works as promised.
It worked for me.
My problems came from Netflix b.t.w.
Somehow this subscription messes up your ATV settings. Strange ...
I've run into this problem more than a few times (Apple TV 3rd generation) whenever I did a software update. Tried resetting router, restart, manual network settings, factory restore, etc., to no avail.
The fix for me was to use bluetooth setup from an iPad or iPhone:
On Apple TV go to Settings -> General -> Reset -> Reset All Settings
After a few minutes, the language choice screen will show up on Apple TV
On iPad/iPhone go to Settings -> Bluetooth and let it discover the Apple TV (for me I had to put my iPhone fairly close to the Apple TV)
Once discovered, you'll be prompted for iTunes username/password and the send diagnostic preference on iPad/iPhone
Wifi settings on iPad/iPhone will automatically be copied over to AppleTV
Once this bluetooth setup is complete everything worked for me again!