Best solution for massive iTunes library for streaming

I have a large iTunes library, about 1.2 TB and I have it all on my laptop thanks to an OWC HD.  My wife and I love to rewatch a lot of our favorite t.v. shows which are on itunes, and as long as itunes is running we can easily stream to our apple tvs in the house.
The issue is I have to go get my laptop and turn it on and waste the battery, so I see the solution as getting an iMac that can hold all of this but the biggest size apple offers is 1TB, I could build one on gainsaver with 2 TB but I don't feel that is enough future proofing for space.
I believe there is a way to have my itunes library on an external, but can the iMac read the external and stream to Apple TV with quality?
I am stuck for how to future proof my massive itunes & iphoto library to be able to be streamed  <<< that's the key part.  I have no issue just storing it, but I need it to be accesible whenever I feel like having my Apple TV stream that library.
Any help would be appreciated!  Thank you forums!

Derekeys wrote:
I believe there is a way to have my itunes library on an external, but can the iMac read the external and stream to Apple TV with quality?
No problems at all.
Get an external USB drive.
Copy the entire /Music/iTunes/ folder to the external drive.
Hold Option, launch iTunes, select Choose library... and select the iTunes folder on the external.
That is all you need to do.
You can do this with on the laptop and and later use the same iTunes library on another computer just by connecting the external, holding Option, selecintg Choose library... and selecting the iTunes folder on the external.

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    Message was edited by: William Mclaughlin

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