AppleTV 2 - Streaming Movies are Skipping

I have had an AppleTV 2 since the day it came out and have never had a problem with 720P content skipping, until now. My setup is an Apple Airport Extreme 3rd Gen, MacbookPro Retina (late 2013), and an AppleTV 2. The AppleTV is hard wired via Cat5e cable to the Airport Extreme. The MacBookPro is on Wifi and using 802.11n on both the laptop and the airport.
I'm using iTunes home sharing and all devices are up to date. I only see the skipping while the movie is starting (for the first 5-10min) and is being downloaded to the AppleTV. As soon as the movie's progress bar is full, the skipping stops. It's as if the AppleTV2 is overloaded doing both tasks and this was never an issuse before the latest AppleTV update.
Is anyone else having the same problem and is Apple aware of this? This should be somthing Apple can fix with an update to the 2nd Gen AppleTVs.

Try the following steps, check whether things are working after each step where appropriate, before trying the next.
    1.    Restart the Apple TV (Settings > General > Restart).
    2.    Restart the Apple TV by removing ALL the cables for 30 seconds.
    3.    Restart your router. (Also try removing it’s power cord for at least 30 seconds)
    4.    Reset the Apple TV (Settings > General > Reset > Reset all settings)
    5.    Restore the Apple TV (Settings > General > Reset > Restore)

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The files that iTunes knows about can be on any drives that your Macbook can access, internal, external or newtork based.
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AppleTV 2 - Streaming Movies are Skipping

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