what happens to PCM when it is processed by DTS or Dolby?

I know PCM is a compressed series of 1s and zeros and is a process for converting analog to digital.  And then it reaches dts or dolby processing.  What happens?  I kinda like dts neural x vs dolby surround which seems inferior.   Using a NAD processor.

seems most stuff coming into a processor is pcm.  
hard to find a good writeup to explain all this

Showing 2 responses by jumia

Decoding was key word.

so pcm is decoded into dts neural or dolby pro, which is essential i guess if u want to have tv audio to flow thru a center channel, otherwise it would all be two channel listening.

All stuff coming thru cable is two channel, and then decoded or processed to spread it to multiple channels.  Crappy stuff i guess.

Netflix, youtube  is pcm or two channel , hbo max and disney are dolby atmos

so netflix is crappy, sad

Am i getting this right?

thanks, great expl

I have a NAD processor and display is very good.  Shows incoming signal and it says PCM all the time.  Why doesnt it say dolby digital?  
It does say dolby atmos for hbo max and disney.  Thought hbo max says it will play highest quality audio and video avail for your device (using an apple tv 4k box connected to processor).