Organizing playlists into folders
To help you organize your songs, videos, and other items, you can add folders below Playlists. After you create a folder, you can add playlists and other folders to it. (You can’t add individual songs or videos directly to a folder.)
To create a folder:
Choose FileÂ > New Playlist Folder.
Type a name for the folder and press Return.
Drag playlists or other folders into the folder you just created, or drag the folder into another folder.
To move a folder from another folder to the top level, drag it to the left edge of the iTunes window.
To rename a folder, double-click it.