Of course, the first thing you should concern yourself with is the kind of video display you want, whether it be a pull down screen paired with a projector, or a flat screen television, depending on your particular tastes. You might put the television on a wall mount, or even have it attached to a motorized track which can hide it from view when it's not in use, making the area great for all sorts of other gatherings as well.
Audio is also something to put some thought into, with surround sound being a priority in any case, but you want to make sure you are placing the speakers appropriately in order to get the best quality sound for the area that you are working with as well as how many people there are in the space and where they are seated.
Speaking of seats, the other component of a quality home theater is the inclusion of leather theater chairs, which can make all the difference in your decor as well as give you the option to customize them to the fullest extent, servicing all of your expectations for the space. With the option to choose everything from the number of seats to the color and kinds of accents, you can easily pick the kind of custom leather theatre furniture that works best in your particular space.
When you are able to put it all together, you will see just how much of a difference each piece makes in the grand scheme of things in the area. You don't want it to be too cramped, but you also want to make sure that you have enough space to walk around without feeling like there's too much space. That being the case, you should always plan out how your room will be staged before you start to move things in.
If you put a little thought into planning out your area ahead of time, then it will help you to realize the full potential of the space and ensure that the time you spend there will be appreciated by all.