What Is iCloud Storage For? Movies? Photos?

I want a way to save my photos, files and movies so that I can remove them from my hard drive. I use Time Machine with an external hard drive, but since this constantly overwrites old files, I am concerned that I will inadvertently lose these. I used to back these items up on DVDs, but with iTunes 11, I can't do this. I understand that iCloud syncronizes my contacts, photo stream, calendar, and so on with all of my connected devices. But what is the additional storage for if I cannot place my movies, pictures, and so forth there?
I have used Apple products for quite a long time, but I have to say that I am baffled by all of this. Does iTunes automatically keep my purchased songs and movies, which would allow me to remove those I don't use on a regular basis from my computer? If not, can these be stored in iCloud?
Sorry for the convoluted question, but I cannot figure this out, and I am feeling dumber by the minute!

snozdop wrote:
Which has no bearing on what I said
I was simply pointing out that Dropbox isn't limited to "a measly 2GB free" as you misleadingly stated, for the benefit of anyone reading who may consider using it and doesn't know it can be increased for free.
I said that DropBox offers 2GB free, please show me where that is in error?
All of the services allow you to earn more, only DropBox makes you start at such a low level.
I have never recomended iCloud as an online storage solution, check your facts before posting.
I never said you did - I said "online services". Read more carefully if you're gonna get narked!
We were discussing Online Storage.
it was the FTC rather than the DOJ that investigated Dropbox for lying
Nope, still wrong. A complaint was made to the FTC by a security researcher for alleged misleading claims, but it has never been investigated by the FTC and none of the researchers claims upheld. To re-use part of your reply to me: "check your facts before posting". ;-)
After the investigation DropBox had to change their claims to show that Employees were able to see your files, (unlike the previous claim that they could not)
DropBox has suffered from numerous breaces of security, 2011, 2012, 2013 and earlier, you can use what you choose, and you can continue to choose to gnore the breaches, it's no issue for me. Read these:
DropBox 2011 password glitch
http://money.cnn.com/2011/06/22/technology/dropbox_passwords/index.htm
2012 Spam mess
http://www.cnn.com/2012/07/18/tech/web/dropbox-spam-security
2013 Spam mess
http://www.digitaltrends.com/web/dropbox-investigating-reports-of-spam-emails/
There are more but you can do your own searching if you want to see them.
I wouldn't use them if they gave me 200GB for free.

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