Speaker cables offer the most dramatic difference in audio as far as cables are concerned, but interconnects aren't as far reaching an upgrade. They do offer enough improvement in sound quality to warrant the price. Using interconnects and speaker cables together removes the possibility of any degradation to the signal, allowing your components to perform at their best.
Pricing
The cost of quality interconnect cable costs more than good speaker cable. You
can spend as little as $25 a pair to well over $2000 a pair. The best overall
interconnect cable ranges from $30-$70 a pair. Any higher and you end up paying
for exotic materials, and even more exotic technical explanations as to why those
materials make your system sound better. Simply ignore anything priced higher
than $70 a pair and save your money for more important things.
Tip: $50 per component can add up very easily, but if you upgrade one unit's cables at a time it usually isn't such a hit to the bank.
The exception to the pricing rule is when connecting a processor to an amplifier. Look to spend about $100 per cable for these types of connections as they do make an audible difference.
Analog Cables
Analog interconnect cable is the most important interconnect cable to replace.
Analog cables send the signal to the receiver and any interference that
happens in the cable is heard through the speakers.
Thus, it is very important for cables that carry analog signals to shield the cable from interference. This is usually done by using thicker, more durable insulation around the cable that also prevents kinking or over bending of the cable as well.
The actual connection piece is usually the weakest link with cheap cable. High quality interconnects solve this problem by using super-tight connections that grip onto the input jack. This prevents the cable from coming loose, and affecting your system's performance.
Digital Cables
Digital cable breaks the boundaries of audio cable by not adhering to the same
rules applied to analog cable connections. Digital audio relies solely on hard
data to being sent to the sound processor, and removes the distortion that analog
signals suffer from when traveling through cable.
This makes the cheap digital cable that comes with your gear sound about the same as some of the most expensive digital cable that you can find. The only reason you'll need to purchase new digital cable is that the stuff included in the box simply wasn't the right length you needed.
When you go out to purchase digital audio cable look for something with a solid connection and simply suffice with that. Don't get lured into the exotic ramblings of some techie who wants to sell you $70 digital cable. It's simply a waste of your money.
Which Digital Connection To Use
Not all digital connections are created equal. Optical Cable and Coaxial Cable are
the two most common types of digital audio connections you're likely to come across.
Optical cable simply doesn't perform as well as coaxial when listening to analog sources such as stereo music. Optical sounds nasally and compressed compared to coaxial digital cables.
For digital sources, such as Dolby Digital or DTS movies, both coaxial and optical cables perform equally well. If you plan on using your digital connection for music and movies, then coaxial is the only way to go. If it's just movies you're interested in, optical cable is better as it tends to be the cheaper type of digital cable you can buy.
Summary
Interconnect cable offers subtle sound improvements by making sure the signal
remains pure as it travels through the cable. They remove any weak links in your
system allowing it to operate at peak performance every time. Quality cable is
the finishing touch to any home theater, and one of the cheapest upgrade options
available.
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