DVD's and Network storage

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I've not done anything like this before so I'm not sure what would be the best way to go about it.

I've got a Buffalo Terastation live 2TB for network storage, I'm looking to put all my DVD's on this so I can put the discs up in the atic out of the way.
I would imagain just copying them to the terastaion would very quickly fill it up as I've got a couple of hundred DVD's, what would be the best way to compress the DVD for storage so I can access them form my Dlink DSM520 and watch them on my TV.

Thanks
 
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