For ours, the kids have a 3 shelf open dvd shelf, like this : http://www.stacksandstacks.com/mission-4-tier-folding-shelf . I found it at goodwill, it is real wood, so its sturdy, and theirs are in alphabetical order on their shelf, except all the christmas ones which are grouped together. They are allowed to go pick out DVDs themselves ( they are 3 and 5) and they can open the box, but they know they are not to touch the disk itself yet, they bring it to me and i put it in the player, etc. Afterward, the 5 year old knows how to do a simple Alpha order - al the a movies grouped together, b and c, etc....within each letter category might not be in order, but the 3 year old is learning to look at the title and group them by the first letter too. Our grown up movies are in baskets, inside our entertainment center - they also know they are not to touch the TV, DVD player, Cable box, or anything on/on the entertainment center.
I have thought about losing the plastic boxes and putting them in a big binder style holder, but I find it easier this way still, however, our collecting is outgrowing the shelf, so I may have to convert to the other way soon, to save space.