Do you think an entry level "stereo" receiver SOUNDS better than the $5,500 AudioControl AVR-1?
Compare your entry level AVR to this $5,500 AVR!
AudioControl Concert AVR-1 A/V Receiver HT Labs Measures | Home Theater
This graph shows that the AVR-1’s left channel, from CD input to speaker output with two channels driving 8-ohm loads, reaches 0.1 percent distortion at 101.8 watts and 1 percent distortion at 119.7 watts. Into 4 ohms, the amplifier reaches 0.1 percent distortion at 176.4 watts and 1 percent distortion at 197.8 watts.
Response from the multichannel input to the speaker output measures –0.02 decibels at 10 hertz, +0.00 dB at 20 Hz, –0.02 dB at 20 kilohertz, and –2.92 dB at 50 kHz. THD+N from the CD input to the speaker output was less than 0.013 percent at 1 kHz when driving 2.83 volts into an 8-ohm load. Crosstalk at 1 kHz driving 2.83 volts into an 8-ohm load was –77.46 dB left to right and –75.00 dB right to left. The signal-to-noise ratio with 2.83 volts driving an 8-ohm load from 10 Hz to 24 kHz with “A” weighting was –99.24 dBrA.
Or compare to a $5,000 Arcam AVR:
Arcam AVR600 A/V Receiver HT Labs Measures | Home Theater
I doubt a stereo receiver magically sounds better than these $5,000 AVR.
Now compare your entry level AVRs from Denon, Yamaha, Pioneer, HK, etc, to these two high-end $5,000 AVRs.
Lets see, how about a $400 entry level Yamaha RX-V473?
Yamaha RX-V473 and RX-V573 A/V Receivers HT Labs Measures | Home Theater
This graph shows that the RX-V473’s left channel, from Audio input to speaker output with two channels driving 8-ohm loads, reaches 0.1 percent distortion at 81.3 watts and 1 percent distortion at 96.5 watts. Into 4 ohms, the amplifier reaches 0.1 percent distortion at 126.5 watts and 1 percent distortion at 143.2 watts.
There was no multichannel input to measure. THD+N from the Audio input to the speaker output was less than 0.019 percent at 1 kilohertz when driving 2.83 volts into an 8-ohm load. Crosstalk at 1 kHz driving 2.83 volts into an 8-ohm load was –74.29 decibels left to right and –73.69 dB right to left. The signal-to-noise ratio with an 8-ohm load from 10 hertz to 24 kHz with “A” weighting was –110.35 dBrA.
What the heck? Why, it looks quite similar, except the cheap Yamaha actually has better SNR by -10dB! What's going on here?
Bottom line, a $500 stereo receiver won't be better than the $5,000 Arcam or AudioControl, and the $5,000 Arcam & AudioControl won't even measure any better than a $400 AVR. So your buddy is just wrong.
X = Entry Stereo Receiver
Y = $5,500 AVR
Z = Entry AVR
If X = Y and Y = Z, then X = Z.
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