I looked at alsa-base.conf and found the following line:
options snd-hda-intel power_save=10 power_save_controller=N
which I guess comes with 9.10 default.  I removed that line and now everything 
seem to work fine.

I guess the "power_save function" shuts down the S/PDIF somehow?

-- 
spdif doesn't work anymore
https://bugs.launchpad.net/bugs/555041
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