The first step to putting the film content into the VLE is likely to involve making a copy of the content (uploading the content directly from the CD/DVD, for example).
With regard to making such a copy, UK copyright law provides an exception (s.32(2) of the Copyright, Designs and Patents Act 1988 (CDPA)) whereby a copy of a sound recording or film can be made in the course of instruction, or of preparation for instruction in making films or film sound-tracks. The copying can be done only by the person giving or receiving instruction, it should be accompanied by sufficient acknowledgment and the instruction must be for a non-commercial purpose. If copying of the film content stays within these limits, it is unlikely to infringe copyright. The exception is very narrow in practice and would apply only to educational establishments/departments involved in providing courses on film or film soundtracks (e.g. media studies).
It is worth noting that the copying permitted in s.32(2) is not location specific. It is likely therefore that provided the copying is done in the course of instruction in film making by either a person giving or receiving instruction the copied content could be put onto the VLE to make it available by way of secure login access, off campus to students receiving instruction in film making or film soundtracks.
S.32(2) would not allow the college or university to make the copied film content available to students other than those students receiving instruction in film making or film soundtrack. Where access is to be provided to a wider audience guidance is provided in the following JISC Legal FAQs: