what does "Consolidate Files" in iTunes do?

well, admit have given full description along option in file> library > organize library. have not enabled feature. still files saved in folder in folder in itunes media folder. /users/accountname*/music/itunes media/music/

sort of difference make media library if enable this?

 

i think if have situation have itunes files in multiple locations put them in one.

instance if you've added files nas or downloads folder or somewhere else, moves them 1 location.

http://support.apple.com/kb/ht1364

 

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