A properly configured home theatre delivers an immersive entertainment experience that rivals commercial cinemas. Modern HDMI technology makes it possible to route stunning 4K or 8K video alongside lossless surround sound through clean, simple connections. However, achieving optimal results requires understanding how different components work together. This comprehensive guide walks you through creating the perfect HDMI setup for your home theatre.

Understanding Home Theatre Signal Flow

Before connecting cables, understanding how signals flow through a home theatre helps you plan the optimal configuration. In a typical setup, video and audio signals travel from source devices like streaming boxes, Blu-ray players, and gaming consoles to your display and speakers. The question is whether these signals pass through an AV receiver or go directly to your television.

Two primary configurations exist for home theatre systems:

AV Receiver as the Hub

In this traditional setup, all source devices connect to your AV receiver, which then outputs video to your television. The receiver handles all audio processing and distribution to your speakers. This centralised approach simplifies switching between sources and provides the most robust audio decoding options.

Television as the Hub

Modern televisions with eARC (Enhanced Audio Return Channel) enable a different approach. Source devices connect directly to the television, which then passes audio back to a soundbar or AV receiver via the eARC connection. This works well with simpler audio systems and takes advantage of the TV's built-in smart features.

Which Configuration?

If you have a dedicated AV receiver with multiple speakers, the receiver-as-hub approach typically offers better audio flexibility. For soundbar-based systems or simpler setups, connecting sources directly to the TV with eARC audio return often works more smoothly.

Configuring an AV Receiver Setup

An AV receiver forms the heart of a serious home theatre system. Modern receivers support the latest HDMI features, but proper configuration is essential for optimal performance.

Connecting Source Devices

Connect each source device to an HDMI input on your receiver using Ultra High Speed HDMI cables. For 4K 120Hz gaming or 8K content, ensure both the receiver and cables support HDMI 2.1. Label each input in your receiver's setup menu for easy source selection.

Most receivers offer enough inputs for multiple devices. A typical setup might include a streaming device, Blu-ray player, gaming console, and cable box. Reserve one input for temporary connections like a laptop or visiting guest's gaming console.

Connecting to Your Display

Use your receiver's main HDMI output to connect to your television. This single cable carries all video from any selected source. On the TV side, connect to the port that supports your desired features. Many televisions only offer full HDMI 2.1 capability on one or two ports.

Audio Configuration

Run your receiver's automatic calibration system, which uses a provided microphone to optimise speaker levels, distances, and equalisation for your room. This calibration is crucial for proper surround sound imaging and bass management.

Ensure your receiver's audio settings match your speaker configuration. If you have a 5.1 system, configure it as such rather than letting the receiver simulate additional channels. Accurate configuration produces better results than artificial processing.

Optimising Audio Return Channel

Audio Return Channel allows your television to send audio back to your sound system for TV apps and built-in tuners. Understanding the difference between ARC and eARC is crucial for lossless audio.

Standard ARC Limitations

Original ARC technology supports compressed audio formats like Dolby Digital and DTS. While adequate for many purposes, ARC cannot transmit lossless audio formats like Dolby TrueHD, DTS-HD Master Audio, or object-based formats like Dolby Atmos in its highest quality form. If you're watching streaming content through TV apps, ARC compresses Dolby Atmos to Dolby Digital Plus, which is still surround sound but not the full lossless experience.

eARC Advantages

Enhanced ARC removes these limitations, supporting lossless audio transmission up to Dolby Atmos and DTS:X at their full quality. If your television and receiver both support eARC, enable it in both devices' settings. You'll need an Ultra High Speed HDMI cable for the TV-to-receiver connection to support eARC's bandwidth requirements.

With eARC, streaming apps on your television can output the same audio quality as dedicated streaming devices connected to your receiver. This makes the TV-as-hub configuration more viable for serious home theatre enthusiasts.

eARC Setup Tip

After enabling eARC, test with content known to include Dolby Atmos, such as certain Netflix shows. Your receiver should display "Atmos" or "TrueHD" rather than "DD+" to confirm lossless audio is being transmitted successfully.

Projector Setups and Long Cable Runs

Home theatres with projectors present unique HDMI challenges. Projectors are typically ceiling-mounted or placed at the back of the room, requiring longer cable runs than typical living room setups.

Cable Length Considerations

For distances under 5 metres, standard Ultra High Speed HDMI cables work reliably. Between 5 and 10 metres, quality becomes more important. Use certified cables from reputable manufacturers and test thoroughly before final installation.

For distances over 10 metres, consider active HDMI cables or fibre optic HDMI solutions. Active cables include signal amplification built into the cable or connector, maintaining signal integrity over longer distances. Fibre optic HDMI converts the signal to light, which travels without degradation over distances that would be impossible for copper cables.

Running Cables Through Walls and Ceilings

For permanent projector installations, running cables through walls and ceilings provides a clean appearance. Use CL2 or CL3 rated cables for in-wall installation. Plan your route before installation, considering access points for future cable replacement.

Include conduit or cable pathways wide enough to pull new cables later. HDMI standards evolve, and a conduit installed today allows easy cable upgrades without opening walls again. A 25mm conduit provides enough room for multiple HDMI cables with reasonable pulling ease.

Speaker Configuration for Immersive Audio

HDMI carries audio data for speaker configurations from simple stereo to complex Dolby Atmos setups with height channels. Your cable quality doesn't affect audio quality, but your receiver and speaker configuration determine what you can actually hear.

Basic Surround Sound (5.1)

A 5.1 system includes front left, centre, and right speakers, two surround speakers, and a subwoofer. This configuration handles all standard surround sound content and provides significant immersion over television speakers. Most HDMI cables and receivers support 5.1 without any special considerations.

Object-Based Audio (Dolby Atmos/DTS:X)

Object-based audio adds height channels for three-dimensional sound placement. This might include ceiling-mounted speakers or upward-firing modules on your main speakers. Atmos configurations range from 5.1.2 (adding two height channels) to 7.1.4 (four height channels in a 7.1 base system).

For Atmos content from streaming services, eARC or a direct connection through your receiver ensures the full Atmos metadata reaches your receiver for proper rendering. Compressed audio through standard ARC still provides surround sound but loses the precise height information.

Cable Management for Clean Installations

A home theatre with cables running visibly across floors and walls detracts from the cinematic experience. Proper cable management keeps things tidy while protecting your investment.

Behind the Equipment

Use cable ties or Velcro straps to bundle cables behind your equipment cabinet. Leave enough slack for easy equipment access but keep cables organized and off the floor where they might be stepped on or catch dust.

Along Walls and Baseboards

Cable raceways that match your wall colour provide an inconspicuous path along walls and baseboards. These plastic channels hold multiple cables and can be painted to match any decor. For a completely invisible installation, run cables inside the wall using appropriate low-voltage cable plates.

Labelling and Documentation

Label both ends of every cable. When troubleshooting issues months or years later, labels save time and frustration. Consider photographing your completed cable setup for reference before closing up equipment cabinets or walls.

Key Takeaway

The best home theatre setup matches your equipment capabilities with appropriate cables and configuration. Don't overspend on exotic cables, but don't underspec either. Ultra High Speed HDMI cables for 4K 120Hz and eARC connections future-proof your installation while quality cable management preserves the immersive environment you've worked to create.

Testing Your Complete System

After connecting everything, systematic testing ensures all components work correctly together. Play test content that exercises your system's capabilities.

For video testing, use 4K HDR content with both dark and bright scenes to verify proper HDR rendering. Gaming tests should confirm high refresh rates and VRR are functioning if your equipment supports these features.

For audio, use content with known surround sound mixes. Walk around your room to verify sound reaches all positions correctly. Dialogue should come clearly from the centre channel, with effects properly panning between speakers.

Document any issues and address them before considering your installation complete. A properly configured home theatre delivers years of stunning entertainment, making the effort of careful setup worthwhile.

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Marcus Chen

Founder & Lead Reviewer

Marcus has installed hundreds of home theatre systems across Melbourne over his 15-year career. He specialises in configurations that balance performance with practicality for real Australian homes.