It plays content from two sources one is locally saved content and the second is via plugins. It was developed as an XMBC open-source media center and still distributed under open source licenses. It works more as a local media streamer rather than functions a server-client relationship like PLEX. Kodi provides a bit different media server software approach. The Kodi was previously known as Xbox Media center or XMBC. Kodi 100% Opensource Media center software that stores all your digital media files in one place like Plex and gives you a beautiful interface to access them. If you are interested in PLEX, also see: How To setup Plex Media Server on Ubuntu Linux.
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