Purchased video on iTunes rather than gifting, can this be corrected?
bckbck is correct in terms of the letter of the law. All sales are final. However, your friend may have some luck contacting iTunes customer service and explaining the situation. They're aware that mistakes happen, and are sometimes happy to rectify them for you - though they are not obliged to do so.

All iTunes customer service is carried out via email. Here's a link to an email page your friend can use to explain the issue to iTunes customer service.