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I don't see an issue here. The Fort Worth library system (as an example) offers lots of OverDrive books and the physical (brick and mortar) library branches are busy and full -- so full that they're a pain in the neck to use. From what I can see OverDrive is augmenting the library system here, not replacing it. I guess you could argue that Fort Worth should build bigger and better library branches but that's probably never going to happen, even if OverDrive didn't exist.
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