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Can I use Airplay2 to play Dolby Atmos songs from Apple Music on my iPhone on the soundbar? I tried it but the soundbar does not recognize it as Dolby Atmos.

No. Currently the only way to play Dolby Atmos music from Apple Music to the Arc or Beam (Gen 2) is through the Apple Music app on an Apple TV 4K connected to a TV with HDMI eARC.


The Arcana may help you. 

 

https://hdfury.com/product/4k-arcana-18gbps/