I have exactly the same question. Here is what I do, and look forward to others' suggestions.
I burn all my movies captured off satellite box on DVD discs (as DVD-Video). I also maintain copies of the DVD folders on an external hard drive. I am thinking of converting the DVD Folders to H.264 using Handbrake so the size gets reduced and many movies fit in a 1 TB external HDD which I can connect to my media player. So, that will leave me with 3 copies of the same movie: on a DVD Disc, on HDD as DVD Folder, and a H.264 MKV file on another HDD (for frequent watching).
As for TV Shows, I am still to come up with a strategy. Most of my shows are about 20 minutes. For now, they are stored on external HDD as DV-AVI files (about 5 GB for 20 minutes).
Regards
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