For the Beginner Home Theater Enthusiast
There are generally two ways to go about building your home theater system. One is to utilize a home theater in a box kit and the other is to put together the whole thing one component at a time.
Home Theater in a Box (HTiB) advantages
The one clear advantage of HTiBs is convenience. This type of home theater equipment is produced by one manufacturer under one brand and is therefore already fully integrated. Very minimal installation needs to be done and all the cables and connections are matched. Just hook up the TV and speakers and you can already start watching your favorite movie in surround sound. Tweaking the audio and video settings are also easily done as the various functions are centralized in one device. HTiBs are also designed to be compact and is thus ideal for small homes or small rooms. Finally you get all the necessary home theater components in one evenly priced package, which makes it less expensive than purchasing individual components one at a time. A home theater in a box system is truly made for beginners because it demands little from them and delivers the entertainment immediately.
Home Theater in a Box (HTiB) disadvantages
As with most fully integrated systems the option for upgrade is quite limited. Most HTiBs for example have a built in DVD player. If you bought a unit three years ago before Blu-Ray came out your DVD player would be somewhat obsolete now and you can't simply replace it because it's built in. The input and output ports of HTiBs are also limited to the number of devices its package is designed for. So you'll find it difficult to include additional devices later on. This kind of home theater set up is also pretty inflexible when it comes to audio output. The speakers that come with these units are usually small and thus give out a much smaller sound compared to ones that can be used in component systems. They may have been adequate when you installed it in a small room. But you'll find them very unsatisfactory if in case you move to a home with bigger rooms.
Component System advantages
When you go this route, you're exchanging convenience for flexibility and the opportunity to install a home theater system in exactly the way you want it. From the set of speakers to the receiver/amplifier to the media players, you have the power to decide what to include in the system. Not all manufacturers are equally good in making audio and video entertainment devices. Some are better at designing TVs and DVD players while others are better at making receivers and speakers. You can mix and match according to the brands that are considered the best at making each component and come up with a powerhouse of a home theater system. Because this approach to home theaters is modular, you don't have to buy the whole set up in one go. You can start with basic components and only later on upgrade to the more sophisticated devices.
Component System disadvantages
Component systems are not easy to install nor are they easy to use. Although this set up can be potentially more powerful, successful assembly requires you to have enough understanding of each individual component's specifications and features and their complex interconnections. The cost of your home theater system will be the sum of costs for each component and that means doing this approach will definitely require a bigger budget.
The basic points of contention between component systems and home theater in a box kits are flexibility and convenience. How you will decide between the two will largely depend on which of the two values is more important to you.

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