I made this switch to MKV a few years ago, when I discovered the MakeMKV software. MakeMKV allows you to rip only the data streams you want from the source -- I usually choose 1-2 audio streams, plus video and subtitles -- then store it in a MKV file. I then import the resulting files into my Kodi movie library, which makes them available to all devices in my home. My current client-end box is the Amazon FireTV 2 running the ARM version of Kodi.
This is nice because you no longer need to handle or swap the physical media (BR disks), you skip all the forced previews and ads you get with settop BR players, and the content is available to all devices served by your media server -- I have 4 TVs and a half-dozen phones/tables in my house, and they can all view any of the content.
If you want to keep lossless copies, the above method will work fine. If you prefer to downsize some movies to save on disk storage, HandBrake works to transcode to x264 or x265. I've done this for several dozen of my kids' movies, which don't need to be stored at full quality. I then remux the transcoded video back into a new MKV container with the same audio and subtitle tracks, often with 75-80% space reduction (and corresponding quality reduction, of course).
I've got almost 900G of movies on my media server, so a fairly small collection, I think. I use snapraid on Linux to guard against hardware failure -- it's not as robust as a backup solution, more of insurance against the inevitable disk failure.
This method has worked fine for my family. However, as more streaming sources come online, there seems to be less of an urgency to buy and store titles, but I'll probably keep doing it, since I don't like to always have to rely on online sources.
Tools mentioned above are
MakeMKV,
Kodi,
Handbrake and
MKVtoolnix. Let me know if you have any questions.
My home theater construction blog:
http://havingfunlongtheway.com/basement-home-theater-design-construction-series/