Schools and libraries do not have the funds necessary to replace an aging population of hundreds to thousands of VHS videos. Despite being an outdated and obsolete format VHS tapes are degrading every day. They do not have the lifespan of the newer optical formats like DVDs and Blu-ray discs. As such Schools and Libraries should be exempt of sections 107 and 108 of the copyright code for VHS tapes.
It is unreasonable to assume that Libraries will let information perish by being held captive by copyright holders in order to have a digital version (optical disc or computer file) of files they already own. The digital network of schools & libraries is still considered property and thus the copyrighted work never leaves the premises it's merely viewed over the network from the Library.