Generally HDMI is a shitshow for digital audio, it makes a certain sort of engineer cry. Unless your extractor has a good quality VxO clocker in it or something, it will probably be worse than the PS4 optical (which is probably using derived clocks from a divider or something, making it sound pretty bad).
Probably the way to fix it is to get a good quality studio-style format converter with decent clocking, and run the optical through that. Sadly, I can't recommend a small/cheap one, the last I used was the RME ADI 192DD, which is pretty big and pricey (but good) :(
That experience was part of the reason I sold the 105D and upgraded to a 103D with an upgraded digital output that replaced the Oppo's stock analog board.
I'd just stick with optical. I have to do HDMI ARC with my WiiU (WiiU --> HDMI --> TV --> HDMI ARC to Oppo --> coax --> Yggdrasil). Maybe upgrade to a Lifatec cable if you like: http://www.lifatec.com/toslink2.html. I liked mine with my PS3.
Not sure if this is what you're looking for, but "Gefen" supposedly makes very high quality products for HDMI bypassing/splitting w/ conversion to S/PDIF Optical (as well as: HDMI/DP to Coax/Optical Outs) but not sure on its total processing latency nor audio related output chip/re-clocker quality.
I never used one myself but heard a couple of uber-rich & super geeky Twitch streamers swear by that brand's quality...
Just make sure whatever you buy has a proper unadulterated HDMI-to-HDMI bypass and/or a 1:2 built-in splitter.
And like others mentioned: its difficult finding proper audio-side S/PDIF de-embedders... w/out some latency issues or horrid re-clocking chips.
There's also a bunch of much cheaper Chinese HDMI to SPDIF splitters w/ de-embedders on Amazon; though they do tend to have lots of fake/sponsored reviews; as I usually check-up on: https://www.fakespot.com/ before shopping on Amazon/Newegg/Yelp.
@sphinxvc When you eventually acquire one, that works properly... please do tell us! As I'm quite interested in getting one of this newer 4K 60Hz HDR 4:4:4 Gadgets myself.
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