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Plex and Dolby Atmos

Hey guys, I've used plex in my home for a while but decided to share my collection with a friend. It seems that even when I can get plex to do a direct stream, it still transcodes the audio and he only gets 7.1 channel audio instead of dolby atmos.

Any idea what setting I've got wrong? The file I tested was one I had ran through handbrake, ensuring that I left passthru enabled.

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