I have to disagree with others here about the fidelity of the S/PDIF output from the Sonos. I purchased the Sonos primarily for the convenience--with a toddler running around pulling CDs off the rack it was an elegant solution--but was quite disappointed with the stock unit's sound quality. I spent a good deal of time comparing the S/PDIF output from the Sonos (streaming Apple Lossless) with my that from my transport (a Musical Fidelity A308CR), both feeding a variety of DACs (MF X-DAC v3 and TriVista, PS Audio Link DAC III). The output from the Sonos was clearly inferior; to my ear there was a significant loss of fine detail, timbral accuracy, etc. --overall, there was more 'surface' and less depth to the music. I actually found it difficult to use for long periods of critical listening without fatigue. This was a surprise to me given the potential advantages of a hard drive as a transport. I therefore shopped around for someone willing to upgrade the S/PDIF output path.
I spoke to a number of folks, but only Steve Nugent at Empirical Audio was willing to give it a try. On inspection, a number of design issues were apparent (per Steve):
-a poor-quality switching power supply sitting directly on top of the digital output board
-a low-quality oscillator
-excess filtering and poor impedance matching in the output pathway.
Upgrades to the power supply and digital output path, including a new high-quality oscillator, were relatively inexpensive.
After receiving the unit back, and despite it being absent from my system for several weeks, I immediately noticed improvements--and they weren't subtle. I could go into detail about all the aspects in which the sound improved, but suffice it to say that jitter reduction (which was the end result of these mods) pretty much improves about every parameter of the listening experience. In particular, the harmonic depth and fidelity of recordings is much greater, with a more natural and effortless sound that is conducive to long and happy listening sessions.
In the end, I feel pretty strongly that the stock unit was created primarily to impress with its great interface and not its audiophile qualities. Some relatively inexpensive mods, however, can rectify this situation.
System:
Audio Physic Tempo IV
SimAudio Moon i5
PS Audio Link DAC III with L2 mods from The Parts Connection
Sonos with Empirical Audio Mods
Empirical Audio Bitmeister digital cable
Cardas Golden Reference IC and power cords
Acoustic Zen Satori speaker cables