We lend videos with minimal restrictions. It works well. We've consistently borrowed twice as many videos as we've lent each semester. We only lend videos to requesting libraries who allow us access to their videos in exchange.
I don't know that there is, as yet, a common practice among academic libraries, but as for policy, the VRT and ACRL have published guidelines that suggest video ILL practices:
Guidelines for Media Resources in Academic Libraries (1999) http://www.ala.org/ala/acrl/acrlstandards/guidelinesmedia.htm
5.1 Media resources should be accessible through resource sharing, in accordance with the ALA Video Round Table Guidelines for the Interlibrary Loan of Audiovisual Formats.
Commentary: Many libraries treat media collections as special collections and prohibit their interlibrary loan. However, library users benefit when media collections are included in resource-sharing programs. No library can meet all of its users' needs for media resources, but libraries are reluctant to lend to our users if we do not lend to their users. The guidelines recognize that some materials may be excluded, but in general, there is no reason to exclude entire formats from interlibrary lending.
VRT Guidelines for the Interlibrary Loan of Audiovisual Formats (1997)http://www.ala.org/ala/vrt/pubguidelines/guidelinesinterlibrary.htm
Media Services Librarian and sometimes ILL librarian
Minnesota State University - Mankato
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