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You have the option with iTunes to add music and other audio files to its library in one of two ways: you can use the default method of copying all files into the iTunes Media folder, or you can opt to add by reference, where the file remains where it is on a drive and the library points to it. (This preference is in iTunes > Preferences > Advanced.)

Some people prefer to manage their music and other audio files in their own folder hierarchy or have enormous libraries they have to keep stored on an external drive. Most people let iTunes copy files and store them in the iTunes Media folder, which is typically found in Home > Music.

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