New TV: what to do with TOSLINK optical output

@mrgreenfur

If you’re only doing stereo then get a stereo integrated amp that has built-in DAC therefore will have various digital audio inputs such as USB, spdif (coax digital audio) & optical digital (Toslink).
The Hegel that you mentioned earlier will be a good option as long as it has DAC and thus will have various digital audio inputs. The Cambridge Audio also makes great affordable stereo integrated amps some models are analog only and have no DAC some models have built-in DAC so will have digital audio inputs. Rotel, NAD, Musical Fidelity also make affordable great sounding stereo integrated amps with built-in DAC so therefore will have various digital audio inputs.

And you can connect your PS4 using spdif (coax digital audio) cable or optical digital audio cable to one of these stereo integrated amps and let the DAC in one of these integrated amps do the digital-to-analog conversion.

You can connect your laptop using a USB cable to the PC USB DAC input port on the integrated amp.

Stereo integrated amps will sound better than AV receivers for stereo music playbacks. 

That's a lot of money to spend when $8 will fix the issue IF the OP is happy with his present receiver and sq from it.

Now obviously if the OP fancies an upgrade of receiver while they are at it then by all means...….

mrgreenfur

Yes, looking at the manual from your link, the default setting will be "auto". As I said previously, that will need to be set to PCM. Then the FiiO D03K DAC that I recommended will work. It comes complete with power supply for the $20.

https://www.amazon.com/D03K-Digital-Analog-Audio-Converter/dp/B009346RSS

Most of the budget DAC's like this look and feel cheap, but not the FiiO D03K, it actually has a quality metal case and feels solid.

Tls49

That FiiO converter does not look bad either maybe for few extra dollars that maybe the way to go after all.

And if it does not pan out as its sold by Amazon free returns!

I'll grab one of those FiiO converters; I'd love the Hegel but I'm not sure I'll hear the difference and would rather save the cash. Thanks much for all your help tls & uberwaltz