External HDD for iTunes Media... Connect to iMac or Time Capule?

mstgkillr

macrumors regular
I only have a 512GB SSD in my iMac and I am trying to save some space using an external HDD. I want to move all of my iTunes media to the external drive and still have the ability to stream the content to my Apple TV. I also have a Time Capsule for import back ups and do not want the iTunes media backed up. Should I connect the external HDD to my iMac or the Time Capsule?
 
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