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Why CD sounds better than DAC Magic 100 airplay?


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I'm not new to audio gear but this is a first attempt at hi fi computer audio.

 

Received my dac magic 100 and streamed a itunes ripped (1411kbps lossless wav) CD through the newest Airport express airplay and compared the same CD through my "cheap" DVD player. The DVD player hands down sounds twice as good.

What's the weak link here?

 

Worse) Itunes wav lossless -> Airplay -> Airport Express toslink-> Dac Magic 100 -> Amp

Better) CD-> DVD player coaxial -> Dac Magic 100 -> Amp

 

FYI Airport Express analog sounds the same as Toslink Dac Magic100...

 

I'm aiming to stream better quality music than my cheap DVD player, what do I need?

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