Hi.... A few Magnavox CD players using the Philips chip set can be modified. Look for a SAA7220 IC. If it has one, then it can be modified. If you have knowledge modifying electronic tools, follow this method: Take pin 14 of the SAA7220 IC and remove whatever terminating resistor is on it. Connect it through a 560 ohm resistor to the input of a wide band pulse transformer. Tie the other end of the primary of the transformer to ground. Pulse Engineering PE65612, Schott Corp 6712540, and Scientific Conversions SC916-01 all will work. Bypass the primary through a 620 ohm resistor. Connect the output of the transformer to an RCA jack. Do not ground either side of the RCA jack. This output is now S/PDIF compatible.
For the dedicated....and I mean certifiable DIY guy with an eligible player, NO amount of time would be too long or effort too much to give something like this a try. Right now, hock shops and DAV stores across the country are being scoured for Magnevox / Phillips CD players.