internal drive perform a little higher than external.
Internal doesn't need any cables hanging outside.
Internal gives better aesthetics than external.
External would take some additional desk space.
External drive's ability will be affected by the speed of the usb port on your pc.
Go for external only if there's no choice, like your smps doesn't have spare cables, no space to fit it inside the cabinet etc. Otherwise internal is always the winner. Regarding suggestions, LG is the all time best when it comes to dvd writers. You should be definitely able to get one from the nearest electronic shop, if not online.
The dvd writer for a PC is just a ODD (Optical disk drive) device not a "dvd player". And USB is a data connection. You need RCA/HDMI capability to carry audio video signals. I doubt if such drives available.
Also a dvd drive just reads the dvd and give raw data to your PC. It's the PC which decodes the data and works on it. Whereas a dvd player will have inbuilt decoders which will read the cd and covert them to A/V signals and send it to your TV. If the drive just sends raw data to your TV, it can't do anything, even if it's smart.
It's very unlikely to find such a device. Even if it's available, it will be super expensive.
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