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ARC (Audio Return Channel) simply means that the TV can receive video signal and send back audio through the same HDMI cable. If your TV has streaming such as ROKU, it can send audio to the receiver while you stream content on your TV. I had to set mine up without the manual so it was a pain to find the setting that turns this feature on but it seems to be working fine. I do know that there are firmware updates that address problems with this feature. If you don't use streaming sourced from the TV, it is a non-issue.
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