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Helpful answers
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Mar 5, 2015 6:52 PM in response to TempeTaylorby GeoCo,Of course all things (both mechanical and biological) can (and do) fail, so the answer to your question is yes.
However before writing off the Apple TV you should have a look at Apple TV: Basic troubleshooting for a start.
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Mar 6, 2015 8:44 AM in response to GeoCoby TempeTaylor,I have been having router problems too. Could that be the cause?
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Mar 6, 2015 9:17 AM in response to TempeTaylorby GeoCo,Sure, depending on the problems you are having with your router. Have you looked at the troubleshooting steps outlined in the link I provided? You should start there.
In addition describing the problems you are having might help. But definitely start with the link.
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Mar 6, 2015 3:35 PM in response to GeoCoby TempeTaylor,Yes. I checked all these things, restarted AppleTV, receiver, and router to no joy. Even run a hard line from router to AppleTV. Nothing. Here is the window that pops up: An error occurred while connecting to the AirPlay device “Apple TV”. An unknown error occurred (-65568).
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Mar 6, 2015 3:41 PM in response to TempeTaylorby Drew Reece,Others have been reporting an issue that they think affects all ATV's…
Re: AppleTV 3 floods DHCP when ethernet connected
It's a little speculative until Apple release a fix or more users find the same issue, if your Wifi is OK it may be worth switching it back to that since the issue above seems to be on ethernet only.
You could also use wifi diagnostics to see if the wifi using channels that overlap with other devices.
About Wireless Diagnostics - Apple Support
Whatever the 'router issue' is you need to either resolve it or try another router. You can't know if the Apple TV is faulty if the supporting network is not working correctly.