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There were and still are publicly owned (or semi-privately, depends were you're looking). They were called (public) libraries.
They were great back then (as a kid, as a student and as an adult) and they're still great nowadays, just less... popular, alas.
Public libraries are still popular, depending on the area. Some of them lend out items like artwork and home repair tools, some of them have special areas for kids to hang out in after school, some of them have movie nights and visiting speakers and discussion groups, etc.