Hi MbkM,
Try the basics as unlikely as they may be. Reboot both devices, reseat the HDMI cable, try a different HDMI cable. Audio quality issues can be a test of patience, persistence and trial/error. The Denon will likely have significantly more audio adjustment possibilities. It may be a good idea to ask a Denon forum or their official support.
On AppleTV side, the Audio settings I'm aware of:
- you could run the Check HDMI (I don't know if this checks the audio but worth a try).
- There is a Reduce Loud Sounds setting, toggle it off or on to check if it changes the issue.
- If the Audio Mode set to Auto, try 16 bit. Try toggling Audio Format between options and test/retest.
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General:
- When you say poor quality especially dialogue, is the audio issue largely dialogue being drowned out by music, background, special effects audio? If you play content that is all dialogue and turn the volume up to a satisfactory level, is the dialogue audio noticeably better?
- Dialogue tends to be center channel based. On the Denon can you raise the level of just the center channel?
- No physical/functional issues with the speaker that is the center?
- If you disconnect the HDMI cable from the AppleTV and plug into your laptop HDMI out and play content from the same app as playing on the AppleTV, is the audio/dialogue any better?
- I read in another forum that Dynamic EQ can cause dialogue issues. The Denon has Dynamic EQ on, try disabling it.