How can I separate the family's Apple ID account library information from our central iTunes account?

When there was only one iPhone and one iPod Touch in the house, an iTunes account was opened and music, movies and other library content was stored and accessed readily for each device.
A second iPhone was introduced and we managed OK by using Music Playlists using the second iPhone on the same Apple ID.
The third phone came along, and since trying to manage that extra account - which included setting up additional Apple IDs (and the wretched iCloud), we have had nothing but issues!
Now I am thinking that I need to have separate iTunes accounts for each person with devices (we now have three iPhones and two iPads reliant on these accounts) - but want to be able to transfer items from the existing account to the individual accounts. That would be a satisfactory solution for most of the data we have stored - but we would still like to be able to refer to a common library.
Apple Care (or should that be 'don't Care') and the guys in the local Apple Store are of no help whatever - the latter referring me to a forum. Apple don't seem too keen to provide actual assistance in my situation. Can anybody help with this matter? - and how will I know if anybody answers this?

On your iOS device:
Settings > Music > turn Show ALl Music off
This will hide purchases that are not locally on your device.
In iTunes create a Playlist with just your music and sync only that playlist.

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