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Why should I use HDMI?

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HDMI is a component video connection. The use of the technology has become more popular because of the image quality. The versatility of the HDMI component video connection is seen via the connector and monitor. HDMI carries audio as well as video components within the set encoding scheme. This makes it possible to connect any DVI source to the HDMI monitor.
The absence of the intervening converter box simply adds to the quality. The technology is designed to a better image than that produced by an analog component video connection. The resultant digital and the analog signals are dependent upon the features of the source and display device. HDMI supports a variety of dedicated resolutions. The main difference in quality comes from the signal delivery in the digital format.
On the other hand, the use of a component cable involves signal delivery in the form of varying voltage –red, green and blue components. The sync information in the case of HDMI component video connection is delivered in a format called Transmission Minimized Differential Signaling, where the blue channel has additional horizontal and vertical sync. In the case of component cable, the color information is split in three. The color-difference signal comprises Luminance, Red Minus Luminance and Blue Minus Luminance.
Both, HDMI component video connection and component cable signal types are fundamentally similar. The difference in viewing depends on the particular characteristics of the source and display device and the cabling. The HDMI is considered error-free, while component cable has analog signals that are known for degradation and information loss. However, there is no reason for the perceptible degradation even amidst home theater installation.
HDMI component video connections are reputed to be built to professional standards and hence, the digital signal handling is considered always error-free. The HDMI signal format is purely digital, from the digital satellite signal to the display unit, with neither loss nor alteration.