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We have 2 Direto-X trainers, each connected to a 4th generation Apple TV (Apple TV HD). We experience regular bluetooth drop-outs on both trainers.
The 4th generation Apple TV has Bluetooth 4.0, whereas the newer Apple TV 4K (5th & 6th generation) has the latest Bluetooth 5.0 - if we upgrade our Apple TV's and connect to the trainers via Bluetooth 5.0 could it possibly eliminate or reduce the Bluetooth dropouts?

Hi

Honestly we didn't test the new version, so I cannot say if it is more stable.
Let's see if someone that has it can share his experience here.
In the meanwhile, you can try to ask to Apple customer care.

My Bluetooth got dropped several time during my latest ride. The trainer was working fine last night. I updated my Apple TV software so I hope that it fixes the dropped signal issue.

My connection has been good except for the heart rate monitor. If iSync to Apple TV before anything else it seem to be more stable and no drppedsignals