Currently I have an SACD-capable Blu-ray player which can output the DSD output as LPCM over HDMI for both stereo and multichannel. It also has an coax digital output, and is capable of converting LPCM 5.1 to AC3 to send that over the digital output. However, it only does so only for DVD-A and Blu-ray, but refuses to do so for SACD. See attached manual excerpt
However, I'd like to use this SACD player with surround equipment which accepts toslink or coax digital input, no HDMI. I've been looking at HDMI audio extractors, but the sale ads are never quite clear on whether the device has an 'encode´ ability, from LPCM to DTS or AC3. They say those devices are able to output surround over toslink/coax, but I presume this is only if the source is already DTS or AC3, not LPCM.
So, my question is: does anyone know about a reasonably priced device that can extract HDMI LPCM and convert it to preferably DTS, or else AC3?