Its a bit confusing, you are right. Lets start from the beginning.
At first there was XBMC, which was then renamed to KODI i think for legal issues. Kodi is a media center platform that you can either use it locally (share some movies from a network drive that kodi ‘sees’ and plays them) or download and install legal/illegal addons (depending where you live), that stream media content of the internet. These are called Video Addons and usually through the SYSTEM->File Manager, you add some ‘sources’ first (called repositories) that host the addons. Of course you can just download an addon in a .zip format, and then you go to SYSTEM->Settings->Addons->Install from zip, to install it.
There are many types of addons. Some, like Services Addons, add different functions to your Kodi system…Like for example a Service addon that automatically finds and downloads subtitles to the movie you are watching.
There are also Music addons, like Pandoki, Shoutcast etc, where you can stream live music from internet radios.
What i always do at least once a year is go to Youtube and search for : Top Kodi addons 2016…It will give you some info on the latest addons available.
Now, OSMC is a linux distro that has built on top of kodi (i think), to add a faster GUI interface and functionality to the Rasberry pi (or Vero, osmc’s own machine). Its way faster than any other typical linux distro out there. (Openelec used to be the fastest one at one point…way before osmc/raspbmc showed up).
They’ve created some extra menus like the OSMC settings menu that you find under Programs, or the AppStore were you can install the most common used linux apps that people use. (Samba for windows file sharing, Transmission, a utorrent client etc).
The confusion with the menu comes from Kodi. It has some pre-built in functions that i guess developers can use. For example “Add to library” option never worked for me…I dont know what that thing does and i’ve been using kodi for 3-4 years now.
The most common menu options are :
- Videos → Add-ons
- System → Settings → Addons → Search (or install from repository…but you’ll have to add some repositories first)
- System → Settings → Addons → Install from zip (zipped addons/plugins, usually found in Github repositories)
- Videos → Files (for locally shared folders, like you shared a folder from your Windows machine and read it in osmc)
You’re probably wondering, what the hell is a repository…Well think of it as a root folder somewhere on the internet…that has subfolders, that contain plugins/addons. (Like the ‘Kodi Add-on repository’, which you should see in System->Settings->Addons->Install from repository). Installing these addons would usually create an ‘app’ inside Videos → Addons.
Like i said there are legal repos and illegal repos. What i mean by illegal is repos that have plugins that share Hollywood movies with a click of a button. Unfortunately i cant give you any names…because we all live in the school of Hogwarts, and Lord Voldemort’s name shall not be spoken of here but you can check on youtube about that.
So to recap. The vanilla OSMC/Kodi/Openelec/whatever distro you got install, is basically crap when it comes to variety. You have to install addons and repositories to really understand what Kodi is all about. You can stream torrents, watch legal/illegal content, listen to music radios, share your media files, airplay from your phone, set up an alarm, watch the weather forecast, interact with IMDB, trakt.tv, play old MAME games, even watch/record live TV if you have a usb TV stick, or even watch live TV from around the world with the proper addon.
The only way to learn how to use Kodi, is to play with Kodi. Go through a few youtube videos or google search using keywords like “Kodi addon repository”. In a day or two you’ll see what i mean.
Btw, if you live in Germany or the USA, make sure you know what you are getting yourself into with the ‘illegal addons’. I suggest you use the official kodi forum (http://forum.kodi.tv/) to figure out if it’s safe to use them. I have a friend who lives in Germany, that streamed a movie using a torrent addon in Kodi, and got a 800euro fine a few days after.
I hope i covered everything. Let me know if you have any further questions.