A great deal of flexibility is provided when talking about storage management.
Hard disk space is recycled according with your policies. Is up to you to decide that you want to remove the recordings after a given period of time or you want to remove the old recordings only when the storage area is full.
Since you may share the storage space with other applications you can decide
The the same storage overflow countermeasures can be applied to the workstations whose screen is going to be recorded.