While it's not particularly difficult to rip Blu-rays or DVDs, it's technically illegal to do so in Australia. Disc-2-Digital is a service that creates legal, cloud-accessible versions of movies you own on physical media -- but you'll pay for the privilege.
The service is offered by streaming media provider EzyFlix.TV. To verify you own a movie, you insert a copy of it in your drive and run the Windows or Mac app. Once verified, you pay $2 for access to a cloud-based version of the existing title, or $5 to upgrade it to an HD version if it's an older DVD.
That only works if the movie is on the list of supported titles. Currently that numbers around 1000, though the developers say the number will increase in the future. The service is essentially an extension of the existing UltraViolet digital locker service, allowing you to pay for copies of movies that don't already throw in an UltraViolet conversion for free.
The reality is that being forced to pay again for a title you already own sucks, and with only 1000 titles on offer so far, lots of existing content won't be covered anyway. It also only works with discs purchased in Australia.
Given the choice, I suspect many people will continue to digitise their physical media, even if it is technically breaking the law, or find their way to an online streaming provider like Netflix or Quickflix. But if that seems like too much effort, this is cheaper than buying a new digital copy from iTunes or Google Play.