When I watch Netflix on my Apple TV sometimes the screen goes black, and the Apple TV light starts blinking, then it exits to the home screen. I have tried restarting the Apple TV and checking for updates but the problem still occurs.

I would restore thru iTunes or at least restore thru settings: Apple TV 2 and 3 settings>general>reset>restore or on Apple TV 4 settings>system>reset>reset and update

Make sure DNS is set to auto (settings-general-network)

If on WiFi try Ethernet

Test on another network

Go to: Settings > General > Time Zone. Change it to "Set Automatically". It will work after you do that.