Ahh ok, that makes sense. Bit cloudy headed right now, but doing my best to think...
It handles DTS/Dolby HD surround bitstreaming fine over HDMI.
I've just tried a DTS encoded surround version of The Fragile (NIN) through JRiver DLNA, it comes out as static/white noise.
Does this mean if I were to set up a DLNA based media server (Separate computer to stream to various devices, instead of having all media on 1 computer as I currently have) that my Receiver wouldn't be able to understand surround DTS soundtracks for movies over the network?
Edit: Interesting behaviour I've just noticed. when trying to playback the DTS encoded surround audio, the playback method automatically switches from the usual device that I set playlists up in (STR-DN1050 BF6721 highlighted in blue) to the "Playing From STR-DN1050 BF6721" with the arrow next to it. It also believes the file is a flac.
Usually the blue highlighted device results in DLNA playback. When I use the "Playing From", it reverts to WASAPI, and checking the bitrate field option now causes issues with the "Playing from" device.
Have to go out for a short time, but can experiment more if it helps a bit later
Edit: Fwiw, these files bitstream in MPC-BE and Foobar, and my receiver recognises them as DTS.