Alongside the iOS 7.1 update, Apple also released Apple TV update version 6.1, which offers a much easier way to hide unwanted app channels from the Apple TV home screen. After updating, all you need to do is highlight an icon, and press and hold the Select button until all the icons start wiggling. Then, head over to the one you'd like to remove, and hit the Play/Pause button, and then select Hide. It's gone! You can re-add any hidden channels by going into the Settings > Main Menu area.
The new method is much easier than the previous, where you'd have to navigate into your Settings menu to hide items. Now, you can do it right from the home screen.
If you haven't yet got the latest Apple TV update, navigate over to Settings > Software Update, and choose Update Software.