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
Op’s original budget for DAC was $500. I completely agree the Marantz 7704 preamp/processor preamp section will be the limitation of the system. Most likely the AV7704 volume control is done by an integrated circuit. But with $500 budget, I don’t see how that can be addressed.

I suggest save until you have bigger budget, then consider adding a dedicated stereo preamp with HT bypass followed by adding an external DAC.

My own journey of combining 2-channel with HT was a painful one (money wasted).  Eventually I settled with semi-DIY passive preamp (fully balanced silver autoformers for 2-channel with another 3-channel copper autoformers for HT channels, working as slaves and will follow stereo volume).  I use Oppo 205 analog outputs for HT, started with Oppo 95 initially, XLR used for main channels.  HT signal processing and channel balance all done in Oppo.  Whether in HT or 2-channel, it's always pure 2-channel audio quality.
I have a Jitterbug and it works great. Of course, I didn't have any interference problem without it but the sound got better with it. You can also check iFi's filters. Or go all-out and get a re-clocker and then a not-to-expsensive dac. I have also tried a chep iFi nano and many people like the iFi Nano Black Label. Or you could go a bit higher in level and try the iFi Micro Black Label or the Chord Mojo. 

Youtube uses a pretty advanced codec which should be able to get good results if you have good gear. Probably not as good as red book but worth listening to if you're note very fuzzy.

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.