I'm not sure what I need

Anthem AVM-60?

You need a pre-processor and some more speakers for Dolby digital and probably a decent subwoofer. Three additional speakers and a sub will take you to Dolby 5.1. For Atmos you would need six more to get to 9.1. Good luck.

N.B. You will also need on channel of amplification per speaker. 

I should have mentioned that I plan to keep it just a right/left/center speaker maybe a sub situation.  So it appears it is a processor I need. Since I only need three channels what would be some suggestions of units that would work for me?

What's your budget?  If money was not an issue, I would probably recommend a used Krell Foundation 4K processor.  It's a 7.1 processor, so it doesn't have all the extra channels and junk for atmos stuff.  But they are in the $4.5k price range.

A used Anthem AVM-60 is in the $1900-2200 range.

I don't have a budget. I just figured the speakers were about $2200 and the amp $3000 so I should spend something similar. I will look at those pieces. Thanks.

I agree with @auxinput an Anthem AVM-60 or other used Anthem AVP that has the features/connections you need would be a great choice for your setup if in budget.  

I see both pieces are for sale in the classifieds. Would I notice the Krell sounding significantly better than the Anthem while watching TV? Does the Krell have some feature the Anthem doesn't have? Is the build quality that much better? It definitely looks better. 

BTW, I very much appreciate the help!

Would I notice the Krell sounding significantly better than the Anthem while watching TV?

Probably not.  In your system I wouldn’t pay up much for the Krell as you’ll likely be very happy with the Anthem.  And Anthem also has rock solid reliability — not sure about the Krell although I’d guess it’s good too. 

I now have an Anthem AVM 60 on the way and I expect to be very happy with it. I really appreciate the responses. You guys were a lot of help. I really didn’t have a clue what to get.

Now I’m thinking of adding a sub or subs to this system. It’s in a bedroom with limited space so consider that. What would be an appropriate size sub to add to this system? I use it for television and almost no music. Would adding a sub improve the overall listening experience significantly?

Yes!  I use a pair of KEF KC62 subs to augment LS50s and they pair very well, as they were designed to do. It’s amazing these little hi-tech subs can deliver both felt and heard pipe organ pedal notes, and can also high-pass to the LS50s. You might take a look at Darko’s You Tube review.

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The KC62s look very good. I'm considering them as well as the REL T7s. 

My room is 14'x16' with an 11' height. Do you think one sub will do it or do I need two?

Start with one and add a second later.  Two usually smoothes the bass.  I think Darko suggests if only one it might be placed between the mains.  Mine are placed on Auralex pads at the bass of the KEF stands, but the pads may not be needed --  I just happened to have a spare pair.

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Thanks. I think I will do that.

I installed the anthem in my system and now I need to connect the oppo to it. Do I do this by HDMI out from the oppo to in on the AVM?

 HDMI-Audio to AVM, HDMI to TV, monitor, or projector.

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