My apple tv saying not connected to itunes - yet it is

my apple tv shows all the icons of movies etc, plays some You tube stuff but not others.
SHows movies icons and pics, but when i try rent it shows rented, but when it i try play the movie it says not connected to the internet, yet it is
I have the latest software updated, i also tried restarting a couple of times in settings.
I have unplugged the device and reconnected
none of this is working.
internet connection in my house is fine since all other wifi dependent devices work seamlessly

Do you have your Apple ID entered on your ATV and home sharing turned on both the computer (iTunes) and the ATV?

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