Is the nanoAVR compatible with Dolby Digital and DTS?
No. These are compressed lossy formats that are used to reduce space on a DVD or Blu-ray disc, or to reduce bandwidth for streaming media and limited-bandwidth connections like TOSLINK. But HDMI has enough bandwidth, so there is no need for them to be used over HDMI. Adding support for these formats to the nanoAVR would have meant extra product complexity and licensing costs, resulting in a higher price. We decided to keep it simple and put the available resources into high-resolution (96 kHz) processing.
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