Mac OS Sierra iTunes storage showing incorrectly
I have a 2016 15" MacBook Pro with touch bar. Running the most current and up to date versions of all apple products. I keep 1.35 TB of iTunes Movies and TV shows on an external drive. However my storage data shows that I have 1.35 TB of iTunes data on my 500 GB Macintosh HD (see attached image). I have tried hiding all files in finder and to reset the statistics and several other tricks that worked on previous OS versions to solve conflicting storage reporting. The iTunes data shows the same even if my external HD is not connected. Any ideas?
MacBook Pro TouchBar and Touch ID, iOS 10.3.1