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network attached storage for iTunes?

my iMac (approx 2011) is running out of hard drive space. I don't fancy a usb drive hanging out the back and I suspect adding a hard drive to the iMac internally could be pricey.

Would network attached storage be the answer?

I assume I could then have the network attached storage drive plugged in somewhere else in the house but the iMac can then access videos and music from this?