Digital Optical Vs. HDMI
- Digital optical audio uses smaller cables than HDMI but only transfers audio in two channels and doesn't function with high-end formats such as HD audio. The format is fine with older equipment but anything more advanced (even such things as an Xbox 360) won't sound as good as an HDMI connection. The sound is transferred from the output device to the input receiver, then a single stream to each speaker from the receiver.
- HDMI uses a larger cable with a wide head to transfer audio and video information through one connection. Although the difference is not always noticeable, HDMI is a "lossless" audio format, no information is misplaced during the transfer from output device to receiver. Depending on the quality of the speakers, this makes HDMI sound sharper.
- While digital optical audio and HDMI are acceptable for 5.1 surround sound (still the most common home audio format), high definition audio, Blu-ray players and systems above 5.1 don't function well, if at all, with digital optical. As the technology progressed, HDMI's higher transfer rate and lossless audio are making it the preferred audio and video format.