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Home theater seating can vary widely and depends on the experience you want and your budget. You can make do with folding chairs or that garage sale sofa, but the better your seating is the better your home theater experience will be.
The first thing to think about is how many people your home theater will host for viewing on a regular basis. It isn't economical to get twice as many seats as you will regularly have guests, but neither is it wise to short yourself on seating that you will have use for. Also think about the space you have in your home theater. This will effect what sort of home theater seating will be best for your space.
The next thing to think about is how much use your home theater will see. If it will see frequent use, you will want seating that is ergonomic, as well as made of durable materials that are easy to clean. Ergonomic seating is important so that the viewers do not get any sort of strain or aches during viewing. If you do not plan to use your home theater frequently you can choose seating that isn't as comfortable or as durable or easy to clean, but keep in mind that this sort of seating may not be worth it in the long run.
Also think about what you want your home theater to look like. If you want it to look like a regular movie theater in miniature, then you will most likely prefer home theater seating that closely emulates that found in a regular theater. Alternately, if you wish to have more of a 'honey' look, you may wish to go with seating that is more like traditional armchairs.
Finally, keep in mind the features you want in your seating. This will affect not only price, but ease of use, ergonomics and comfort, and ease of cleanup. Rocker and reclining seats will be more expensive, but more comfortable. Seats with cup holders in the arms may also be more expensive, but will save space by eliminating the need for side tables, and may keep cleanup low. Viewers will have a stable place to put their drinks, rather than trying to balance them on their laps and then find a place to put the drink when they need a bathroom break. Some home theater seating even has massage units built in!