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American libraries could have benefited from these machines to dispense educational or entertainment CDs/DVDs. Today they store them on shelves.

I'm thinking shelves are way more efficient take up less space, no repair or electricity needed.

These machines could enable an automated check out process that is open 24/7

Someone has to maintain them, and that is beyond the scope of most librarians.

The fees to run a company just to maintain these machines all over the country would make them cost prohibitive.