IPOD 4TH GENERATION CANT GET IOS7

I find it absolutely barbaric that I spent a lot of money on this ipod maybe 1 or 2 years back for my daughter.

However,now that ios7 has been introduced her ipod will not let her download some of the apps like Netflix and Youtube.

The ipod is telling her to update to ios 7 yet , it doesn't provide an update what is going on ?