This is a sensitive area. While MKV is a legal format, distributing copyrighted movies without permission is not. Here is how to build a legitimate "extra quality" library:

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Plex or Kodi are the best tools to turn a folder of MKVs into a beautiful, Netflix-style home library with posters and metadata.

⭐⭐⭐⭐ – Excellent quality for the file size, but beware of fake releases and legal risks.

: Unlike standard MP4 files, MKV is an open-standard multimedia container that can hold unlimited numbers of video, audio, picture, or subtitle tracks in one file. This allows "extra quality" releases to include multiple lossless audio tracks (like DTS-HD or Dolby TrueHD) and high-bitrate video streams. Rate-Distortion Efficiency : The "extra quality" aspect usually refers to a low BD-rate reduction

This is why the phrase has emerged. It represents the raw, uncompromised data straight from Blu-ray or high-end streaming remuxes.