Exactly, the WDLive handles what it’s given and the output is flat and should be. It’s up to you to tweak the EQ on your receiver.
I have had zero issues with sound coming out of the box. You might notice this problem if you output multichannel audio on a 2 speaker setup as the WDLive does not have advanced audio functions. Try using the optical output (digital) and you’ll see !
This box is meant to deliver full potential when using both HDMI and Optical audio out, you will truely appreciate the results !