Podcast #1202: Home Theater System for under $2000

On this week’s show we look at how the strategies keep changing in the streaming wars. We spend your money and design a home theater system for less than $2000. And as usual we read your email and take a look at the week’s news.

News:

• Broadcast Schedule’s New Paradigm
• 75% of Streamers Have Tried an Ad-Supported Plan
• Google TV users will soon be asked to rate apps
• Viewers can now add Apple TV+ to a DIRECTV subscription

Top Streaming Services Change Up Strategies

A Business Insider article suggests the streaming wars have shifted from competition to strategic alliances and distinct priorities. Netflix now prioritizes engagement over subscriber numbers, revamping its homepage with vertical video to rival YouTube and TikTok.

Disney focuses on subscriber growth through bundles with Hulu and ESPN, aiming for profitable expansion. Warner Bros. Discovery’s Max emphasizes profitability, leveraging high-quality content to retain subscribers rather than competing with Netflix’s scale.

Engagement is key as streamers build ad businesses. Netflix, with 8% of U.S. connected TV watch time, uses engagement to reduce churn and support its $2.2 billion ad business. Amazon’s Prime Video scales ads by enabling them for all users unless they opt out, using shopping data to boost ad effectiveness.

While Netflix and Amazon focus on engagement for ads, Disney, Paramount+ (79 million subscribers), and Peacock (41 million) prioritize subscriber growth, though neither is profitable yet.

Profitability is critical for WBD, which has cut Max’s content spending to focus on financial sustainability, leveraging HBO’s legacy content. Its bundling with Disney+ and Hulu supports international growth.

Apple TV+ faces high churn due to its limited library, leaving its strategy unclear. As streamers balance growth, engagement, and profitability, alliances and niche strategies redefine success in a crowded market.

Home Theater System for under $2000

Ok so you bought a house and spent all your money but you already had a 70” TV from your previous home. And while that has been great you want something more out of your TV watching experience. Somehow you scrape together a $2000 budget and want to know what kind of “Home Theater” System you can cobble together to provide you with immersive surround sound. For this exercise we are assuming a typical living room (e.g., ~15x20 ft) and a focus on movies and general entertainment. We will emphasize value and performance while keeping the setup beginner-friendly.

Key Considerations

• Room Size: Our medium-sized living room can benefit from a 5.1 or possibly a 5.1.2 (Dolby Atmos) setup for surround sound. We have chosen to stay with a 5.1 system for budget concerns.
• Priorities: Clear dialogue, deep bass, and immersive surround effects are key for movies and gaming. Music performance is secondary but still considered.
• Components: You’ll need an AV receiver, speakers (front, center, surrounds), a subwoofer, and a streaming device. 
• Setup: We opted for wired speakers for reliability and cost savings over wireless systems, which can eat into the budget.

Recommended System

AV Receiver: Denon AVR-S760H 2021 Model  ($500 from Amazon)

We are on a budget so a 2021 model that does everything you need for a small family room on a budget is absolutely the right call here. Don’t overlook last year's models on your A/V equipment. No one will walk into your house and whisper about last years (or four years ago) model behind your back. This is a 7.2-channel receiver with 75W per channel, supporting 4K/120Hz, Dolby Atmos, DTS:X, and room calibration (Audyssey). It’s versatile, beginner-friendly, and handles modern formats for movies and gaming. 6 HDMI inputs (3 with 8K support), Bluetooth, Wi-Fi, and HEOS for streaming. Refurbished units can save even more.

Speaker System: RSL CG3M 5.1 home theater system ($850 Direct from RSL)

We splurged a little on the speakers. The CG3Ms will not disappoint! We have been fans of RSL since we had Joe Rogers on the show about 15 years ago. He is a musician and understands what music is supposed to sound like and has designed speakers with that in mind. 

This compact speaker system will put you right in the middle of a concert or movie! You really can’t get better at this price. The 300 watt 10” subwoofer is plenty for your small to medium sized family room.  

Speaker Wire and Cables: Monoprice ($50 Budget)

Pretty much from day one we have been saying buy good cables but don’t spend a lot of money doing so. $50 at Monoprice goes a long way for your Speaker and HDMI cables.  

Streaming Device: ($150 Budget)

A streaming device enhances your home theater by providing access to all kinds of entertainment options, including Netflix, Hulu, and Disney+,and YouTube. These dedicated streaming devices offer faster performance, regular software updates, and broader app compatibility. They also support advanced features like 4K HDR, Dolby Atmos, and voice control, elevating your viewing experience with superior picture and sound quality. Additionally, devices like Roku, Amazon Fire TV, or Apple TV are portable, affordable, and easy to set up, making them a versatile upgrade for any home theater, regardless of your TV’s age or brand.

Sales Tax: $90 - $150

Unfortunately we can’t forget the tax man. There are a few places in the US that do not have a sales tax and other areas range from 6% up to 10%.

Total Cost: ~$1,640-$1,700

This leaves ~$300-$360 for a programmable remote, Atmos, or height speakers. Or a year of a new streaming service. 

This system balances cost, performance, and future expandability, delivering an elevated experience for your new home without breaking the bank.