First of all, don’t shoot the messenger! I just want to mention something that apparently at least a few people aren’t aware of who frequent this board. If you already know about Handbrake just move along, nothing to see here.
If you have more than enough (MORE than enough) disc space for your media then move on and read no further as well. The nice thing about all this is you have the freedom to do whatever you want to do and no one can (or should) criticize you. I’m certainly not going to, and I would hope you’d extend the same courtesy to me.
Rather than storing your DVDs and blu-ray rips as originals, I’m suggesting you ought to use a freeware program for PCs and Macs called Handbrake to reduce them greatly in size. Using the high standard presets on the program (and changing to an mkv container) you will end up with a file that plays with about 98% of the quality of the original (the only thing it won’t have is the HD sound. It does allow you to pass through the DTS or AC3 surround tracks, but not the HD sound. Live can’t play DTS-HD but it can do True-HD so if you want that you’ll have to remux it back in which isn’t difficult). Handbrake also add subs in on DVDs (you can add them on blu-rays as well but it requires two easy additional steps).
I’m very picky about my video and even if you are highly skeptical that further compressing it (it’s already compressed on the DVD or blu-ray) will degradate the picture I would ask that you at least try it with a couple of movies that are high res (anything made in the last few years will qualify – older films tend to be much more grainy and even more forgiving of further compression). You will be surprised and you may become a believer (once upon a time I didn’t believe it either).
In A/B tests I literally can not tell the difference between the original and the encode on my 55" Samsung LED or my 9’ HD Projection unit. Obviously, YMMV but if you don’t at least try this you are missing out on being able to keep at least four times the amount of movies in the same space (not to mention avoiding issues like not being able to stream wirelessly due to bandwidth issues).