HDMI out audio vs 7.1 RCA output?

RCA 7.1 out means you're using the DAC's inside the BD player.
HDMI out means you will be using the DAC's inside the AVR.

If you use the RCA out, the AVR will digitise the inputs anyway, as it has to do room EQ and other processing, unless your AVR has a analogue bypass function.

The only way I could see analogue outputs being better in sound than a AVR if you had a high end BD player, with a basic AVR.

Generally bass management in BD players is pretty basic.

You could try using the dowmixed stereo outputs from a BD player, and the coaxial output to your AVR, in 2 channel direct mode and see which sounds best. Analogue set to direct mode (so no A-D conversion)
 
FYI I used my BD Players 5.1 RCA out to get lossless audio, as my av pre lacks HDMI.
I've since found out the Oppo player subwoofer output clips the signal, so I've gone back to coaxial, sucks...as I just get standard DD/DTS audio.
 
FYI I used my BD Players 5.1 RCA out to get lossless audio, as my av pre lacks HDMI.
I'm being picky, but it you can't get 'lossless' audio over an analogue interconnect (coaxial cable). It's only 'lossless' while it's digital straight off the BD. Once analogue it's an imperfect analogue representation of the original digital data.
 
I'm talking about true HD/master audio. I won't be getting that, because my av pre lacks hdmi and onboard HD audio formats, and since using optical/coaxial best I'll get is DTS core. Shame about Oppo having clipping sub channel.
 
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