Just perused an Apple troubleshooting site and learned there is no way to set the aspect ratio with the ATV3. I found this reply to that question.
“There isn't one. Its output is designed purely for 16:9 widescreen TVs. Any adjustments thereafter must be made on the TV.
If videos display incorrectly either the TV aspect ratio is wrong, TV is not widescreen, the stream (Netflix) is wrong or the local video file is wrongly encoded. Of course if it's a 4:3 film or TV show then it will display as intended with black bars on sides on a widescreen TV...”
Have you tried different streams? TV versus Netflix/Hulu etc?
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