What is the best set up (hardware and/or software) to store and access movies and music purchased through apple tv without using the computers storage space

I have run out of space on my imac desktop, which only has 500GB of storage, due to the movies, music, etc. that have been purchased through iTunes and Apple TV.  I do not want to delete the purchases but need to free up space on my computer.  I am looking for the best scenario for moving the media to another source and still have access the media from Apple TV and possibly from ipads, macbooks, ps3, etc. within my house.  I have been looking at upgrading the Time Capsule to a larger capicity one and/or having a backup hard drive to the time capsule.  I would like to know what other people are doing to have these features without filling up their computer's hard drive.  Please advise.  If a media server other than the computer is needed please explain.  Thanks for your help.

Can the time capsule be set up to back up both the computer and the external hard drive, therefore creating a second copy of both? 
Can the external hard drive be set up to store all the media which can then be accessed by apple tv and other devises as if the media was on the computer OR will the media have to moved back to the computer's hard drive in order to be viewed on other devises?  Another way to look at this is can you set up iTunes to find the media stored on the external hard drive and access it without moving the media back to the computer?
I realize this must be a problem for many people utilizing iTunes and Apple TV to purchase and view movies and listen to music but the solution does not appear to be easily determined.  I'm sure the first solution would be to just buy a computer with a larger hard drive but that is not the most economical.

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