Apple TV and Iomega 2TB or Time Capsule

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Hi community, here's my virgin post as a brand new Mac user (17" MBP). Just switched over from PC and loving it. Having one of those 'microwave moments' - that is, I used to live without one, but have no idea how.

On to my question. I want to replace my HP Media Server (that never worked well anyway), with a shiny new Apple TV to stream iTunes, Pics, Videos to the TV and Home Theater. I'd also like to setup a new backup mechanism, also a replacement from the HP Media Server.

I can see that a Time Capsule is both a Time Machine back up tool and 802.11n wireless router. I already have a N wireless router that works great.

Can I plug in an Iomega 2TB drive to my existing Linksys router and have Apple TV recognize this as the source disk to stream media to the TV/Theater? If so, are there any latency issues or 'other concerns' that are better solved/served by ditching the Linksys and just using a 2TB Time Capsule - that I'm assuming will stream everything like butter to my TV/Theater.

Thanks in advance for the coaching. :)
 
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Your Mac's Specs
3.4 Ghz i7 MacBook Pro (2015), iPad Pro (2014), iPhone Xs Max. Apple TV 4K
The Apple TV will stream media that is in your iTunes Library. One could assume that as long as the media on the Network HDD was contained in your iTunes library that it should work. I've never tried it though.
 

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