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Networked video distribution has really only started to make sense quite recently. The idea is that all of your DVDs and recorded TV programmes are stored on a common server (or servers) and can be accessed from any television in the house.
It is potentially expensive and / or cumbersome with the main hurdle being how DVD's are copied onto the system. Whilst you are technically entitled to access your own DVDs for use in this way, it involves disabling copy protection and the actual steps involved are generally for the computer-literate only.
There are some seriously high-end systems that will copy the discs without the need for a computer, but we are talking about several thousands of pounds.