Use local ethernet switch for AV system or run many cables?

[AudioSceptic]

A layer 2 switch, which is what most people would be using at home, sends data to a port associated with a MAC address (using it's MAC address table). A switch with layer 3 capabilities can route packets between multiple networks based on IP address (using it's ARP table). Layer 3 switches are much more expensive and are more likely to be found in enterprise environments where multiple networks are required.

Thanks. I was keeping it simple, explaining the crucial difference between a hub and a switch, even if I cut a corner with IP vs MAC address.