Home video

• 1. Early Home Viewing Experiments

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  In 1912, Thomas Edison and Pathé began selling film projectors for home use. This venture failed within two years because the business model was fundamentally flawed. Edison had started with phonographs and did not differentiate between listening at home and viewing films there. The cost of making release prints remained high, reaching at least $1,000 by 2005. Early projector owners rented films directly from manufacturers rather than buying them. Edison exited the home viewing business in 1914 while Pathé lasted a few more years before leaving during World War I. These early attempts proved that ordinary consumers could not afford to own copies of films or watch them at their convenience. For most of the 20th century, feature films were inaccessible after theatrical runs ended. Only wealthy hobbyists invested large sums in projectors, screens, and film prints. Home viewing made little revenue for film companies until new technologies emerged decades later.

• 2. The Videotape Revolution

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  Ampex pioneered the first commercially practical videotape recording system in 1956. Their reel-to-reel equipment was physically bulky and unsuitable for home use. In the mid-1970s, videocassettes became the first truly practical home-video format. Betamax launched in the United States in 1975 followed by VHS in 1976. Several years passed before prices dropped enough for widespread household adoption. Magnetic Video established itself as the first company to duplicate and distribute feature films on home video. Andre Blay wrote letters to major studios offering licensing rights near the end of 1977. The company struck a deal with 20th Century Fox paying $7.50 per unit sold plus a guaranteed annual minimum payment of $500,000. This agreement covered nonexclusive rights to 50 films that had been broadcast on network television at least two years prior. Studios initially priced videocassettes between $50 and $70 each because they assumed consumers would only rent them. Wholesale orders required a minimum of $8,000 from wholesalers capable of handling such transactions. By 1992, 105,502,000 VCRs were purchased in the United States alone.

• 3. Rise Of Video Rental Stores

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  Video rental stores became popular ways to watch home video during the 1980s. These physical retail businesses rented movies and prerecorded TV shows under terms agreed upon in contracts. Many shops also sold previously viewed or new unopened movies alongside rentals. In 1978, total VCR purchases reached only 402,000 units wholesale with an average price of $811. By 1992, ownership rose to 75.6% of television-owning households. The shift to home viewing radically changed revenue streams for film companies. Films performing modestly in theaters often sold significantly well in rental markets. Cult films found particular success through this channel. Video distributors realized many consumers wanted to build libraries if prices were right. They slashed prices to sell hundreds of thousands of units at $15 to $20 instead of few thousand at $70. Paramount Pictures reported two top three best-selling videotapes and six of the top 20 rentals by 1983. Children's home video acted as the ultimate accelerant for market growth. Parents discovered paying $20 for a videocassette kept children riveted for over an hour repeatedly. Walt Disney Company recognized its family-friendly films could conquer the home video market. Buena Vista Home Entertainment executed this strategy throughout the 1980s and 1990s.

• 4. Special Interest Niche Markets

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  Until the mid-1980s, home video was dominated by feature film theatrical releases like The Wizard of Oz, Citizen Kane, and Casablanca. Late 1980s saw emergence of small companies specializing in special-interest home videos. These programs differed radically from earlier forms because they were never intended for theatrical exhibition or television broadcasting. New video programs targeted niche audiences in the so-called sell-through channel. Topics expanded beyond movies to include dog handling videos, back pain videos, and cooking videos. Golf and skiing tapes started selling as well. Contemporary sources noted new technology had changed the territory of the home video market. Special-interest video increased audience numbers for topics previously thought unmarketable. These productions created specific content exclusively for home viewing without any broadcast plans. Small companies filled gaps left by major studios focusing on mainstream entertainment. Consumers purchased these items directly or ordered them through mail order systems. The approach proved successful enough to generate significant revenue streams outside traditional cinema distribution models.

• 5. Optical Disc Format Wars

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  In the early 2000s, VHS began displacing by DVD format. DVDs offered several advantages over videotapes including mechanical simplicity and durability. Each time a VHS cassette played, magnetic tape pulled out wrapped around inclined drum head inside player. DVDs consisted of single discs spun at high speed with no moving parts vulnerable to breaking down. Magnetic fields could erase VHS tapes but did not affect optical discs like DVDs or Blu-ray. Physical size differences meant DVDs took less space to store than bulky videocassettes. Video resolution doubled compared to VHS standards while supporting both standard 4:3 and widescreen 16:9 aspect ratios. Skipping ahead became much easier and faster without rewinding required by tapes. Interactive menus, multiple language tracks, audio commentaries, closed captioning, and subtitling options added value. By mid-2000s, DVDs dominated prerecorded video movie markets in rental and new sales categories. Late 2000s saw stores selling Blu-ray discs supporting high definition formats. Blu-ray officially released the 20th of June 2006 beginning competition against HD DVD format. Toshiba conceded support for HD DVD in February 2008. As of January 2016, 44% of U.S. broadband households owned Blu-ray players. Funai announced ceasing VCR production July 2016 marking end of known manufacturing.

• 6. Streaming Disruption Era

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  One of streaming's largest impacts occurred on DVD which became less popular with mass online media popularization. Media streaming caused many DVD rental companies such as Blockbuster to go out of business. The New York Times published an article about Netflix's DVD-by-mail services July 2015 stating continuing service had 5.3 million subscribers down significantly from previous year while streaming services held 65 million members. Netflix primary business remains subscription-based streaming offering online libraries including films produced in-house. April 2019 figures showed over 148 million paid subscriptions worldwide including 60 million within United States plus free trials bringing total above 154 million. Company operates globally except mainland China due to local restrictions Syria North Korea and Crimea under sanctions. Offices exist India Netherlands Brazil Japan South Korea among other locations. Netflix began producing media itself starting 2012 taking active role as producer distributor for both films television series. Following launch various streaming services early 2020s home video continued declining further. Walt Disney Studios Home Entertainment discontinued physical distribution entirely certain regions Latin America Asia excluding Japan Australia New Zealand Portugal Hungary outsourcing activities regional distributors like Divisa Home Video Spain Eagle Pictures Italy Leonine Studios Germany Sony Pictures Home Entertainment North America.