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No, you select the optical audio from your source. In my case, I originally had optical from my TV as the source. It was connected to a Vizio 3.1 soundbar. I connected the optical cable from the tv to this device instead, then in your case optical cable from the Insignia to your Onkyo receiver. The insignia will read the 5.1 from your source and distribute 3.1 to your Onkyo, then the rear signal to these speakers. I used a video tester from Netflix to confirm I ended up with true 5.1. Good luck.
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