While all of the components of an audio system are important, your speakers are the ones that actually deliver the sound to your ears. That's why it's so imperative to pick great speakers that are suited to your needs.
Various Audio set-up options include:
5.1 Surround Sound - 5 speakers and 1 subwoofer - left front, right front, center channel, right rear and left rear) and 1 subwoofer.
7.1 Surround Sound – 7 speakers and 1 subwoofer (left front, right front, center channel, left side, right side, right rear and left rear) and 1 subwoofer.
5.2 or 7.2 Surround Sound – same as above but with 2 subwoofers (left and right)
Floor-standing speakers
Floor standing or tower speakers have been around for years and in many ways remain the standard against which all other speaker types are judged. In general, they are larger than other types of speakers, reproduce a wide range of frequencies including deep bass, and are usually more efficient giving you more volume per watt of amplifier power.
Tower speakers tend to be more expensive than bookshelf speakers, but they're hard to beat for big, room-filling sound.
Bookshelf speakers
If you're working with limited space (or budget), bookshelf speakers are a good alternative to floor-standing models. With bookshelf speakers, you get smaller speakers that you can place on stands or on shelves and excellent performance in a smaller box (usually with a smaller price tag)
Subwoofer/satellite systems
Satellite speakers can be mounted on the wall or ceiling, or can be placed on stands or shelves. Because they're so small, they almost always handle only highs and mids. The combination of satellite speakers and a subwoofer takes up little floor space, is easily integrated into your décor, and delivers rich, full sound.
The subwoofer is, of course, much bigger than the satellites. But because of the omni-directional properties of low-frequency sound waves, you can place the subwoofer in an out-of-the-way location without sacrificing performance.
In-wall & In-ceiling speakers
In-wall and in-ceiling speakers work in the same way as regular speakers, but they're mounted in a frame and set into the wall (or ceiling). Instead of a separate speaker cabinet, they use the wall itself as the cabinet. Though most in-wall speakers are full-range, you'll probably want to add a powered subwoofer to your system for bass reinforcement. Some manufacturers produce in-wall, in-ceiling and in-floor subwoofers as well.
With proper installation, these speakers sound great and can blend seamlessly into your room's décor - they even have paintable grilles. Plus, you don't fill up your floor space with speakers. Keep in mind, installation is more involved than setting up traditional speakers. And you will, of course, need to run your speaker wire behind the walls and/or ceilings.
Outdoor speakers
Outdoor speakers are a very popular way to bring your favorite music outside. They are weather-resistant, so they can be placed under the eaves of your house as well as on covered porches or decks. A speaker with plenty of power handling and a wide frequency response will perform best in a large open space. Outdoor speakers can also be purchased as “rock speakers” to blend in with your landscaping – especially good around pool areas so they are at your ear level while swimming!
Speaker wire
Speaker wire is an important part of your speaker setup. Very old or very cheap speaker wire can degrade sound quality. Of course, if you have a hard time believing speaker cable quality makes a difference, just think of your luxury vehicle running on cheap inferior tires!. Better quality speaker wire results in better sound quality and is especially noticeable with higher-quality speakers.