Here's how you can hide cloud based content in iTunes 11. There are two ways to do this: by media type or you can hide all cloud content.
Hide Cloud Content By Media Type
1. Select the media library in iTunes (TV shows, movies or music).
2. Click on View in the menubar.
3. Click on Hide TV Shows in the Cloud (this option changes depending on the media library that you are in...it will say Hide Music in the Cloud if you are in the music library, etc.).
Hide All Cloud Content in iTunes 11
1. Open the iTunes application.
2. Click on iTunes in the menubar.
3. Click on Preferences.
4. Click on the Store tab.
5. Uncheck the checkmark next to "Show iTunes in the Cloud Purchases."
For more, see the original article at the link below.
iTunes: Hide Cloud Content | Tech Recipes
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