I'm using a Raspberry Pi 4 with a 4TB USB hard drive. Works fine for DVDs ripped with MakeMKV, even when transcoding for some clients.
Doubt it'd handle Blu-ray's though, so I've not bothered ripping those.
Edit: I do the DVD ripping on my laptop and just pull the USB drive out of the Pi to copy new files to it.
I was going to chime in with just this.
Was running a Pi4 with an 8TB external drive. Have it pushing 720 and 1080p content including rips of my BluRays. There's no transcoding going on, though.
I have my i7 6700k doing the encoding in handbrake, then the files get written to a share on the Pi.
If OP is mostly doing DVDs, I'd start with a Pi4 and see if that does the trick. If it does, great. Didn't spend hundreds of bucks on hardware that would sit idle most of the time. If not? You're out a few bucks, but you can turn that Pi4 into an emulation machine that will go up to N64, Dreamcast, and PSX pretty well.
If more hardware is needed, low power (35w) Intel and AMD business machines can be found off lease. I snagged an i5 6500t based HP mini PC with a Win10 Pro license embedded in the BIOS for $200 USD. Sips power and is currently my Plex server and various other game servers at the same time.
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