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Libraries have had video collections for viewing and borrowing for at least 25 years that I know of. I remember watching documentaries at the university library for my Associate Diploma reports.
My local library also has Wii, Xbox and PS3 available, they have music sundays, writing workshops, all sorts of community focused events.
Are they just for reading? No, they are a community resource that is promoting literacy through preschooler reading mornings, morning tea with a librarian chats for stay at home parents, free internet access and activities for teenagers.
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