I've been on a makeMKV rip lately. But I've been then handbrake'ing them to go on my phone. A blu ray comes down to 1.8GB or so at 1080p fast settings. I could probably make it smaller.
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Plex server can do that on the fly if you choose to “download” a movie to bring it offline on your phone.
For me, I want all the original bits on the server and let it encode on the fly per device if required.
Oh that's a cool feature.