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QUESTION/HELP: DAC/Preamp vs AV Processor


Jun 6, 2021
Not exactly sure how or what to ask here...let me explain.

We are putting together a stereo speaker system. We plan to use it primarily with our TV for all things - TV, movies, and music. We have a BluRay player, internal apps to the TV, NAS, gaming systems...ect.

Our plan is to connect all of our AV components to/through the TV to a DAC/preamp (miniDSP SHD) to the amplifier (VTV Purifi) and then to the speakers (Ohm Walsh). Our plan is to connect the TV to the DAC/preamp via an optical cable.

However, our TV (LG OLED C1) does not natively support all audio file formats (ie. DTS). And lossless formats??? It's all confusing to me. There is an option to set it to PCM. My understanding is this is lossless and is fine for a stereo system as Dolby is not needed since it is NOT surround sound.

But doing this setup, do we loose sound quality because of the TVs audio limitations? Or does the audio passthrough via PCM without loss in audio quality? Or do I need to get an AV processor that supports every audio file type/format?

I need someone smarter than me on this stuff to school me up. I dont want to needlessly purchase an overly expensive AV processor if a more affordable DAC/preamp will do just as well.
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