Another common way to do it is to stream to an Apple Airport Express then connect the mini-Toslink digital output from the AE to the optical input of an external DAC. Even a used 802.11g previous-generation AE is plenty fast enough and can easily be found on ebay or craigslist for under $50 if you're interested in keeping the experiment inexpensive.
Of course you need to have a DAC or a player of some kind with optical input, which can cost anywhere from $50 to many thousands of dollars.
As suggested, an uncomplicated approach is the Squeezebox Touch.
Of course you need to have a DAC or a player of some kind with optical input, which can cost anywhere from $50 to many thousands of dollars.
As suggested, an uncomplicated approach is the Squeezebox Touch.