That cable probably isn't going to change anything. It's still an analog connection.

What AVR do you have? There may be a way to make a digital connection so it does the decoding. My Pioneer lets me plug in an iPod or other mass storage MP3 player over USB and it gets direct access to the files.

Pioneer PDP-5020FD, Marantz SR6011
Axiom M5HP, VP160HP, QS8
Sony PS4, surround backs
-Chris