S/PDIF
The name stands for Sony/Philips Digital Interconnect Format (more commonly known as Sony Philips Digital Interface),
A digital audio interconnect used in consumer audio equipment.
EDIT:
SPDIF is used for transporting stereo digital audio signals on PC audio cards, CD players, DVD players, car audio systems, and other systems which transmit or receive stereo digital audio.
The main advantage of SPDIF Digital transference (.vs original analog transmissions), is noise immunity.
For example, if a CD-ROM drive has poor quality D/A (digital-analog) converter; it can generate all kinds of undesirable hiss, static and other unwanted ambient noise.
Also, if the signal between the CD-ROM drive and the sound card is transferred via analog format; the connection cable used can often times act as an antenna of sorts.
It can actually pick up unwanted “stray” noise, which is generated from the typically-occurring internal computer chassis electro-magnetic interference.
Therefore, if your sound card has a SPDIF input and your CD-ROM drive has a SPDIF output- Instead of using a shaky analog connection; opt for a crisp, clean SPDIF connection- you won’t be disappointed.
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