A DAC is a must for anyone who truly appreciates content delivered as it was intended to be heard. Utilizing a DAC may be very different than the audio setup you are already familiar with. A DAC is not really an audio source, nor is it an output device or a pre-processor. A DAC converts digital content to an analog format for playback on a home stereo system. The quality of the conversion process differs by the quality of the DAC. While some newer audio/video receivers like Sony’s ES line and Yamaha’s Aventage line boast high-quality internal DACs, this is not the case for most other products with built-in DACs.