Today, "home cinema" implies a real "cinema experience" and therefore a higher quality set of components than the average television provides. A typical home theater would include the following:

1. A large, high-quality, display - generally a big-screen television (Liquid crystal display television, plasma TV, traditional CRT TV, or a rear-projection TV) or possibly a video projector, often HDTV-capable.

2. One or more audio/video sources. High quality formats such as DVD or laserdisc are preferred, though old home cinema setups use a stereo VHS VCR. Cable, KU or C band are also common. The exponential increase in the capacity of hard disk drives and the processing power of home computers has made it possible to buy or build a home theater PC to act as a library for video and music content. Recently, HD DVD and Blu-Ray players, each capable of outputting high definition pictures at up to 1080p and high quality sound, have become available, and one or other of these formats is expected to displace DVD as the high end consumer format of choice.

3. An audio system that is capable of surround sound. This usually consists of at least 4 (though more are common) full range speakers and a subwoofer for low frequency effects. Sometimes a specialized decoder is used to allow the playback of newer surround-sound formats.

4. Comfortable seating and organization to improve the cinema feel. This might include several comfortable recliners and curtains or subdued room lighting (required for video projectors) to enhance the experience.

5. Higher end home theaters commonly also have sound insulation to prevent noise from escaping the room, and a specialized coating to ensure correct absorption of the sound in the room.


Some home cinema enthusiasts go so far as to build a dedicated room in the home for the theater. Such a room is often decorated to resemble an actual cinema, with projection enclosed in a projection booth, specialized furniture, a piano or theatre organ, curtains in front of the projection screen, movie posters, or a popcorn or snack machine. These more advanced installations often include sophisticated acoustic design elements, including "room-in-a-room" construction that isolates sound and provides the potential for a nearly ideal listening environment. These installations are often designated as "screening rooms" to differentiate from simpler installations. A few home cinema setups even have features that are not commonly found in commercial cinemas, such as tactile sound. Others go to extremes in design such as the Death Star Designed Home Theater!