In the early to mid 1990's, a typical home cinema would have a Laserdisc or S-VHS videocassette player fed to a large rear projection television. In the late 1990's, home theatre technology progressed with the development of DVD, Dolby Digital 5.1-channel audio ("surround sound"), and High-Definition Television.

In the 2000's, the term "home cinema" encompasses a range of systems. The most basic system could be a DVD player, a standard CRT television, and a "home theater in a box", a 2.1 speaker system with left and right speakers and a small 8" subwoofer cabinet.

An expensive home cinema set-up might include a Blu-ray player, a 60" High-Definition Television with a "cinema-style" 16:9 format, a several thousand-watt home theatre receiver with five to seven surround sound speakers, and a powered subwoofer with a 12" (or more) driver.

The most expensive home theater set-ups, which can cost over $100,000 US, have digital projectors, expensive screens, and custom-built screening rooms which include cinema-style chairs and Audiophile-grade sound equipment.