can I stream a movie from a thunderbolt connected external drive through itunes through home sharing to an apple TV from my Macbook Pro?

Hi, my Macbook Pro is almost full! Its 500GB SSD has almost 260Gb of Movies and TV Series on it and i'm looking at options at the moment. My kids all have Apple TV's and when the time comes they use my Macbook Pro to stream content to their Apple TV's.

Is it possible to connect a Thunderbolt External drive to my MAcbook Pro and put all these movies, onto that, and then from there be able to stream these via iTunes for my kids to get via home sharing on their Apple TV's? If so that could be perfect for me.

If this is not possible does anyone have another option I could do in order to free up my drive space?

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