Apple TV Streaming Sound Quality vs Streamer?


I am looking for the weak link to improve sound quality.   Seems logical it is the Apple TV as a source.  Would a moderate streamer inside of $1500 make much of a difference when streaming Tidal and the like?  

Current Equipment:
Speaker: Dali Euphonia MS-4
AMP: Modwright KWA 150 SE
Preamp/ DAC: Peachtree Grand Integrated
Source: Tidal / Apple TV
puffbojie
ATV for video streaming is sufficient good. But for HDMI to DAC, not that good. Too bad ATV4 eliminate the optic out.
@kahlenz  Could you list the DACs you've had success with pairing with the Airport Express?

I've tried a couple different DACs (Marantz PM6005, Arcam irDAC) but had to move them after they would not maintain a 'lock' on the signal.  The only one that's worked for me is the FiiO D3.

Thanks!
Hello and thank you for all your feedback on this topic. :).
In keeping it simple, does anyone has any recommendation on a simple cable that can be purchased to hook up the ATV4 via HDMI out to my Canary KD2000  Dac, preferably USB as it supports all music files, as well as  DSD64 and 128....
If USB is not an option, AES/XLR or Coax works just as well. I think....
Thanks 
HP

It doesn’t take much to better ATV sonically, and you don’t need to spend more than $500, the price of the Bluesound Node2i
AppleTV resampling to 48k makes highs sound tizzy. It doesn’t sound good. Do yourself a favor and get a decent streamer, like a Blusound Node 2/2i as others have suggested. If you’re going to use an external DAC and don’t need the enhanced wifi of the 2i, save a few bucks and get the Node 2. Node 2i DAC section sounds better than the older Node 2, and the wifi is faster.

I'm using ethernet connect my Node 2, and also using an external DAC so only need the streaming features. Don't need the enhanced wifi and don't plan on using the internal DAC so I went with the older Node 2 and saved $175.