Apple TV Sound Quality

Recently I compared the sound quality of a music track in several ways:
1. Original CD played directly in Bose Lifestyle.
2. Same track stored as AIFF on MacBook streamed with Apple TV with TosLink Cable.
3. Same track stored as AIFF on MacBook streamed with Apple TV with Analog Cable.
1st option gives an excellent and dynamic sound. 2nd option is less dynamic and 3rd option is the least quality.
As AIFF is a non compressed format of the original track of course I expect the same high quality with option 2.
Some advise using a D/A Converter. Is this the solution? Or is there another solution to enjoy the original CD sound quality through Apple TV?
Regards,
Cemmy

What are 2+3 running into, the Bose system?
I would not expect the AppleTv analogue out to be of decent quality as it's likely to have dirt cheap components.
As far as 2 goes, I assume by streaming you are not using Airtunes, but playing the track on AppleTV directly. I ask as Airtunes will add adjustments applied in itunes and can sound different to AppleTV direct.
Was the track synced to AppleTV and played or streamed - there could well be differences in sound that you would not expect.
Assuming the CD rip was good AppleTv should just output the bitstream and the amp's D to A converter would largely be responsible for the quality. Assuming this is the Bose DAC, you would imagine it might use the same DAC as for the internal CD, which would make you wonder why - it could be down to a better CD transport in the Bose giving a more accurate bitstream, less jitter or better jitter correction than applied to other inputs.
All very well having a different DAC, but if the analogue input on the amp is not up to par it may not help.
Also check your Toslink input does not have some processing applied eg pseudo surround or similar which could adulterate the sound.
You could also try playing the track via the Macbook directly using a mini-toslink adapter.

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