First note that any HDMI cable will pass ARC audio .. HDMI 1.3 or HDMI 1.4 ... doesn't matter. Second, for the feature to work, the HDMI cable from the AVR must be plugged into the HDMI(ARC) jack on the TV as there is generally only one input designated as the ARC input, the HDMI-CEC (VierraLink) on the TV must be set to ON as well as to "external speakers". Then the HDMI Control feature on the AVR must also be set to ON as well. AFAIK, all these settings normally default to OFF from the factory. And lastly, note that AFAIK, your Panny can only pass PCM 2.0 using the HDMI(ARC) connection so if you want to pass DD 5.1 from Netflix movies, you're much better served connecting an optical cable from the Panny to the AVR.