DAC OR NO DAC???


I am a newbie here and just getting into hifi and I am sure this is a dumb question but if anyone can comment and help me out?

I am currently listening to a lot of youtube music videos(quality varies) and tidal from my hp laptop via hdmi connect to a marrantz 7704. the 7704 seems to be decoding the signal pretty well. I tried a audioquest dragonfly red and it gave me some interference or something. ( maybe I needed the jitterbug to go with it?) so I returned it and just using the hdmi. Happy with tidal also but really like the music videos. One question is hdmi sound quality not as good as I could get? Can a dac help from this source? a dac to try that uses an hdmi? or should I just forget hdmi? A dac to try for under 500 or should I just wait and spend more? Thanks


My startup system consists of bw 804 d3's ( I do see where people say they are a little bright but so far I am enjoying them:) Marantz 7704, McIntosh mc207, bw 805d3 and htm1d3 for movies, fathom 212 that I turn up for movies and back down for music, source as described above and audio technical at lp5 ( I know it is a cheaper one but wasn't sure how much vinyl I would listen to but I am impressed with the quality of the new vinyl and sound I am currently getting compared to digital) -room 13 x 15 no acoustic treatments yet




rwrightcpa

caphill

Classe Sigma SSP mk2 preamp processor only has 5.1.2 so only two atmos speakers? I have four atmos and a total of 9, are there options to include all the atmos speakers? I guess I can just keep the 7704 and try a stereo pre or integrated. I like the idea of going with the classe and I amu not beed a  dac,


HDMI routinely gets dissed on Audiophile Forums, but I listen to an Oppo 203 via HDMI to a Bryston DAC 3, which has 4 HDMI inputs.  The HDMI is excellent, fully the equal, if not superior, to every other input on the Bryston 
@rwrightcpa 

You can save a lot of money by going with the Classe Sigma SSP preamp processor. Sell your Marantz AV7704. You won't need to add an external DAC. Run a USB cable directly to the Classe Sigma SSP's USB DAC input for your stereo music playbacks. 
Do you need Atmos? Your McIntosh MC207 is only a seven-channel amp. How would you be able to manage 5.1.4 setup? You would need another two-channel amp. 

caphill

I have an extra nuforce amp running the atmos speekers. I will keep track of your other discussion on the Lyngdorf MP-50 and wait and see if you think it is worth it.
I think I am going to hold off for a bit to research the dacs a bit more and maybe get a new pre.

I am pretty happy with my current setup for the time being, Its better than what I had before:)

Thanks again for everyone's responses.