i did something like this at my last company. we had a terabyte storage system that was being horribly underutilized so i set up a "jukebox" with ~6k songs on it. everybody had their own player and could create their own playlists etc.
i'm also in the process of setting up a media server for our new home (currently just a hole in the ground): again, terabyte storage tucked away in the back, only now it will serve out video as well. with multiple "screens" connected wirelessly it will be able to stream out different simultaneous media programs all around the residence.
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