I've been using a generation 1 Apple TV for several years now. I recently bought an Apple TV 3 and liked the additional features such as being able to point to which library to play from and which device to play too. After several hours of listening I surmised that the audio output was the same between the two, no improvement. Then I started getting into SACD rips and this is were things went downhill. It's Pepe's fault too for bringing this stuff up.
I was streaming a SACD rip of Allan Taylor - "Colour to the Moon" and thought it sounded pretty good. But, I noticed that the high end was a little "tinty" and then i hit a note that made my ribbons buzz. I've never had that happen before. For shits and giggles I burned this album to cd and was pleasantly surprised that you could burn a .m4a lossless file to cd and it would play on a CD-R. Playing through my Philips it sounded much better. That same note was crystal clear and did not negatively effect my ribbon tweets in the slightest.
Later that night Pepe the Deek sent me a text about an article he found noting that Apple TV down converts all of their signals to 16bit. After moving around multiple forums I found this to be the case and the hacks available to my generation 1 apple tv did not resolve this issue. To date, there are no hacks available to the generation 3.
I recently installed Channel D's Pure Music (
http://www.channld.com/puremusic/)on my macbook and was very impressed with the sound. It adds the ability to adjust your output signal to match your output device and it will recognize the DAC it is connected to by name/maximum capabilities. That and you can add FLAC files to your itunes using it. All macs have a built in mini optical jack which doubles as the analog headphone jack. The nice thing about pure music is it will confirm your bit and KHz rates during playback. I happen to have a mini toslink cord and connected it directly from my macbook to my DAC. It sounds dramatically better. Why apple would allow you to play 24bit+ files but down convert them is beyond me. Pretty shitty in my opinion.
I have a Mac mini sitting at work collecting dust so I'm going to see what operating system I can load on it and if it is compatible with Pure Audio. Then connect that directly to my DAC. In both cases, using my macbook or mini, I can use the apple remote on my iphone as a remote so I don't have to have a monitor connected to it or have to view the macbook screen.
Anyone else have any dealings with apple tv's or using a mac in your audio setup? I'd love to hear your input.