As others have said, ARC sends audio from the TV to a sound bar, amplifier, etc.
Previously you’d have to attach all your various DVD players, games consoles, cable/satellite boxes to the audio receiver and have that do the switching of the source when you wanted to go from gaming to movie night.
With ARC all your sources connect to your TV and the TV does the switching, it can also control the audio equipment, turning it on, changing the volume, etc. so that you only need to use the TV remote. An additional benefit is that it can also send audio from apps on a smart tv.
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