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How can I get my 3rd gen Apple TV 4K to work with my Sonos arc and lg tv to play the higher quality sound options.  My tv has eArc and passthrough both enabled but the Apple TV either gives me pcm or 5.1.  That’s it.  If I watch anything through my smart tv apps I get the higher quality sound.  Is there a setup or another device I need to hookup in order to achieve the sound quality I want when streaming through my Apple TV?

What exactly are you testing on the Apple TV? From what app(s)?

 

Set the TV to these settings:

HDMI Input Audio Format: Bitstream
Digital Sound Output: Pass Through
eARC Support: On

 

Set the Apple TV to these settings:

Change Format: OFF
Dolby Atmos: ON

 

With these settings, all 5.1 audio will play as “Multichannel PCM” and Dolby Atmos will play as “Dolby Atmos”. Stereo audio will play as “Stereo PCM”.