The laws about copying entire works (as opposed to creating clips) are pretty specific and stringent. Individuals are not allowed to make copies under most circumstances. There are exceptions of course: fair use is one (but the criteria weigh against copying whole works under a fair use claim); making a copy of an item you own personally, for your own archival purposes (i.e., not to give away), is another, etc.

Libraries can create “preservation” copies of material in “obsolete” formats, so long as we are unable to buy an unused copy at a “reasonable” price. In other words, we can create preservation copies of VHS tapes (being an obsolete format), if the film is not available unused as a VHS or as a newer format such as DVD/Blu-Ray, etc. Furthermore, if the library does make a preservation copy, that copy normally can only be used within the library.