2016 Tizen TVs don't automatically switch from Dolby Digital to DTS when bit streaming the audio track to a receiver.
Using the default settings, TV automatically detects Dolby Digital content and forwards that to the receiver correctly. However, if a DTS movie is played the TV doesn't automatically switch to DTS and just sends the audio as 2 channel PCM to the receiver (Sounds pretty bad).
While a DTS movie is being played, DTS option become available in TV's audio setting menu, and if selected TV starts to correctly forwards the audio to the receiver and receiver shows it as DTS. However, now that the TV is in DTS mode Dolby Digital audio is no longer detected correctly and sent to the receiver as 2 channel PCM.
In summary, by default the TV is in Dolby Digital mode. You can only switch between Dolby Digital and DTS while that particular format audio is being played and while the TV is in one of the modes it plays the other format as 2 channel PCM.
What are going to do to address it:
We've filed an issue with Samsung to see if they can either fix the problem or give us the right APIs so we could switch the TV audio mode based on the format that is being played.
For the time being, we are adding a new audio setting, "Allow DTS". It will be disabled by default. The setting will force all DTS audio to be transcoded to AAC (Dolby Digital) allowing most users to get 5.1 audio on DTS movies, but it adds another level of conversion which isn't ideal for audio quality but still much better than 2 channel PCM.
If you really want your DTS audio to remain DTS and are ok with changing your TV settings before and after every DTS movie then just check that "Allow DTS" in audio settings and the TV will play DTS audio without trying to transcode it.
Note: The setting is not in 3.0.4 yet, it should be added to the next version.
I had contacted Samsung to see if they will fix the issue on their side. They got back to us saying that this is pretty much by design. Trust me this makes as much sense to me as it does to you. I'll keep pushing.