PCM uses less compression. But you asked about cable. Cable only uses Dolby Digital. To convert it to PCM is not going to improve the audio quality. If you have a digital connection to your surround sound stereo, then you would want to use Dolby Digital, for the 5.1 surround sound that you can not get from PCM. If you have an HDMI hookup to your TV, then it might only accept PCM. That would be the best reason to use PCM.
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