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Tips for The best audio and video setup for Apple TV



Now your Apple TV is set up lets take a look at the hardware: what plugs in where, and how to ensure you get the best audio and video quality.
The third-gen Apple TV features two methods of sound output: a dedicated optical output (often referred to as TOSLINK or sometimes S/PDIF), and audio output as part of the overall HDMI signal that also carries video.

You can skip this part if you don't have an expensive home entertainment set up in your home. Just plugging your Apple TV into your TV via the HDMI cable should mean that the audio comes through your TV speakers. However, if you have some expensive stereo or AV equipment here's how to set that up.
Here are the options for typical home entertainment setups.
1) Apple TV and AV receiver and TV
If your AV receiver has HDMI input and output, as most do, connect your Apple TV via one of the HDMI In ports, then connect the AV receiver to the TV via a second cable from the HDMI Out. Alternatively, for optimal quality connect your Apple TV directly to your TV using an HDMI cable, then use an optical digital cable to make a direct connection to your receiver’s optical input. If your receiver only has a coaxial digital input then an inexpensive converter box will be required.
2) Apple TV and AV receiver/TV and also hi-fi system
Connect the Apple TV’s HDMI output to the receiver, then connect the receiver to the TV via its HDMI output. Use the optical output to connect your hi-fi (see below if your hi-fi lacks a digital input). If you’d like to use an optical connection for both your receiver and your hi-fi, an inexpensive optical audio splitter box can be used to provide a signal for the receiver/TV when you’re watching television or movies, and for a hi-fi when you want to use your Apple TV to stream audio. Remember that the signal is digital so there’ll be no degradation in quality!
3) Apple TV and RCA/phono hi-fi, or headphones
For some hi-fi systems with RCA/phono input (that is, the traditional red and white analogue audio inputs) you’ll need an optical digital to analogue RCA/phono converter box. Because this device generates the audio you hear, the hardware inside has a substantial effect on quality. Audiophiles pay entertaining amounts of money for the best examples although perfectly functional examples can be had for less than a tenner on eBay – just search for “TOSLINK to analog converter”.
4) Apple TV: how to get the best picture quality on Apple TV
Ensure you’re outputting the correct HD resolution for your TV by opening Settings, and selecting the Audio & Video heading, and paying attention to the HDMI Output and TV Resolution headings. Then return to the main menu and select iTunes Store, and ensure the correct setting is visible under the Video Resolution heading.
Don’t forget that some TVs might need overscan deactivating to ensure the sharpest possible image without any cropping at the edges. How this is done varies from model to model, so see the TV’s instruction manual, although often selecting the PC/gaming option on the TV does the trick.  
If you find overscan being used during AirPlay playback, open Settings on the Apple TV, then select Audio & Video, and turn off the option entitled Adjust for AirPlay Overscan.

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