Yes this setup will work if you have the receiver connected to the HDMI 1 in (ARC input) on the TV to the receiver HDMI out so long as both are ARC compatible. You will be able to control volume and power on the receiver from the TV.
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You may have this sound issue if so here is the solution. In setting up the Netflix and Amazon Prime movie apps on my KDL55W802a I discovered that there was no sound from the movie coming through my AV receiver. After lots of hunting I find that the Audio Return Channel (ARC) HDMI cables are correctly installed which is ARC on the AV receiver to ARC on the TV. But what additionally needed to be done was turn on ARC in the Yamaha RX-V673 receiver. Going to receiver settings, HDMI control, and turning on ARC did the trick.
If you don’t have ARC, then just run an optical cable from AV receiver to TV. We have been used to the TV originating sound from the TV programs, but what has changed with Smart TV’s is that now the smart movie applications have to return sound and video to the AV receiver. One HDMI cable labeled with ARC/Smart/v1.4 does the job. Now when Netflix movies play the surround sound comes through the AV receiver and the AV4 lights up. It seems most of the movies are not in surround, so the AV receiver has to do the work of recasting into surround.
Do I like the TV? Yes it is an entertainment center with so many sources of media displayed on that lovely 1080P 55 inch screen. It couldn’t be better. BTW, plan on an afternoon to set up the years free Netflix and Hulu+ what with finding the redemption app, setting up accounts and tiny typing in user name and password. After setting up all you have to do is sit in the recliner and point the remote to get whatever media is in your house and on the internet