Magnetic Video

Magnetic Video Corporation was an American home-video and home-audio duplication business founded in 1968 by film producer Andre Blay and Leon Nicholson. Based in Farmington Hills, Michigan, the company became one of the most important early distributors of prerecorded feature films for home viewing. Its significance came less from the scale of its original duplication operation than from its decision to treat theatrical motion pictures as sellable consumer videocassette products. In late 1976, Andre Blay developed a plan to license feature films for release on the emerging Betamax and VHS formats. At a time when studios were still uncertain about the commercial value of home video, Blay reached an agreement with financially troubled 20th Century-Fox to license fifty films. Magnetic Video released those titles to consumers in 1977, making it one of the first companies to bring a substantial collection of theatrical motion pictures to the public on both major videocassette formats. The catalog included films such as Hello, Dolly!, The French Connection, Patton, M*A*S*H, The Graduate, Cleopatra, The King and I, and The Day the Earth Stood Still. The company sold its releases directly through the Video Club of America, a mail-order operation established by Blay. A television-guide advertisement helped publicize the initial catalog and presented prerecorded films as an owned home-entertainment product rather than merely a broadcast or theatrical experience. Magnetic Video's commercial model also helped demonstrate that prerecorded cassettes could support rental businesses. In 1977, George Atkinson purchased copies of the initial titles and used them to establish the Video Station rental operation in Los Angeles, an early example of the retail video-rental model that later became widespread. Magnetic Video expanded its licensing activities during the following years. It added material from Viacom, the Charlie Chaplin estate through RBC Films, AVCO Embassy Pictures, Brut Productions, Bill Burrud Productions, Pathé newsreels, ABC Video Enterprises, ITC, American Film Theatre, and United Artists. The company also released material associated with older Warner Bros. films that were then controlled by United Artists. Its catalog therefore extended beyond contemporary studio pictures into classic films, television-related properties, documentaries, newsreels, and other licensed programming. The business expanded internationally through Magnetic Video UK in 1978 and Magnetic Video Australia. In the same period, it introduced MV-Gard, a proprietary videocassette copy-protection system intended to compete with Copyguard. The system was used on Magnetic Video tapes produced from 1978 until the company's reorganization in 1982. Fox acquired Magnetic Video in March 1979. Magnetic Video had been a small over-the-counter public company, with Blay serving as a major shareholder and chairman. After Blay left, Fox reorganized the operation in January 1982 as 20th Century-Fox Video. Magnetic Video also made a short-lived move into sports programming and laserdisc releases. Later in 1982, Fox combined its video activities with CBS Video Enterprises, creating CBS/Fox Video on June 18. The Magnetic Video name consequently disappeared as an operating home-video identity. The company is remembered for helping define the early commercial architecture of home video: licensing studio libraries, selling prerecorded cassettes directly to consumers, supporting rental outlets, and creating a recognizable branded presentation for each release. Its opening logos, scrolling text, and spoken announcements became familiar to early videocassette viewers. Although the brand was absorbed into successor Fox video businesses, its 1977 film releases helped establish the market that later became a major part of the film industry's distribution economy.

Magnetic Video Corporation was established in 1968 by Andre Blay and Leon Nicholson in Farmington Hills, Michigan. It initially operated as a home-video and home-audio duplication service, but its historical importance arose from its role in commercializing prerecorded theatrical films for consumers. In late 1976, Blay proposed licensing motion pictures for release on home videocassette. The timing was significant: Betamax and VHS were becoming available to consumers, but film studios had not yet settled on a durable business model for home distribution. Blay persuaded 20th Century-Fox to license fifty films, allowing Magnetic Video to release them in 1977 on both Betamax and VHS. The collection combined recent features with older Hollywood films and included titles such as Patton, The French Connection, The Graduate, Cleopatra, M*A*S*H, and The King and I. Magnetic Video sold the tapes directly through the Video Club of America, a mail-order organization created by Blay. Its advertising, including an early placement in TV Guide, helped frame videocassettes as consumer products that could be purchased and kept at home. The company's releases also contributed to the emergence of video rental. George Atkinson bought copies of each of the first fifty titles and used them to establish the Video Station in Los Angeles, offering membership-based access and daily rentals. This model became an important precursor to the large video-store industry. During the next several years, Magnetic Video broadened its catalog through licensing agreements with numerous rights holders. Additions included Viacom, RBC Films and the Charlie Chaplin estate, AVCO Embassy Pictures, Brut Productions, Bill Burrud Productions, Pathé newsreels, ABC Video Enterprises, ITC, American Film Theatre, and United Artists. The company's ITC relationship produced a release of The Muppet Movie. Its United Artists arrangement also covered films that had originally been associated with Warner Bros. but were then controlled by United Artists. The company expanded outside the United States with Magnetic Video UK in 1978 and Magnetic Video Australia. It also introduced MV-Gard in August 1978, a tape copy-protection scheme intended to compete with Copyguard. Magnetic Video used the system on its tapes through the period leading to the 1982 reorganization. Fox acquired Magnetic Video in March 1979. Before the acquisition, the company was a small over-the-counter public company, and Blay was both a significant shareholder and chairman. Magnetic Video later experimented with sports releases and laserdisc distribution, but these activities did not preserve the original corporate identity. In January 1982, after Blay's departure, Fox reorganized the business as 20th Century-Fox Video. Fox subsequently combined its video operations with CBS Video Enterprises, creating CBS/Fox Video on June 18, 1982. The Magnetic Video brand therefore had a relatively short independent life, operating from 1968 until its absorption into Fox's successor video structures in 1982. Its lasting contribution was structural: it showed that film libraries could be licensed, duplicated, sold directly, and rented through a consumer home-video market. Its distinctive animated opening logo and spoken presentation also made the company recognizable to early videocassette audiences.

• 1982

  Operations are reorganized under 20th Century-Fox Video

  [1]Magnetic Videoen.wikipedia.org

  Fox reorganized Magnetic Video after Andre Blay's departure.

• 1982

  CBS/Fox Video is created

  [1]Magnetic Videoen.wikipedia.org

  Fox merged its video activities with CBS Video Enterprises, ending Magnetic Video's independent corporate operation.

• 1979

  Fox acquires Magnetic Video

  [1]Magnetic Videoen.wikipedia.org

  20th Century-Fox purchased the publicly traded over-the-counter company.

• 1978

  International expansion begins

  [1]Magnetic Videoen.wikipedia.org

  Magnetic Video established operations in the United Kingdom and later traded in Australia.

• 1978

  MV-Gard is introduced

  [1]Magnetic Videoen.wikipedia.org

  The company launched its own videotape copy-protection system.

• 1977

  First major theatrical videocassette catalog reaches consumers

  [1]Magnetic Videoen.wikipedia.org

  Magnetic Video released fifty 20th Century-Fox films for consumer purchase on Betamax and VHS.

• 1977

  Video Station helps introduce the rental model

  [1]Magnetic Videoen.wikipedia.org

  George Atkinson used copies of Magnetic Video's first fifty titles to establish an early Los Angeles video-rental business.

• 1976

  Blay develops the theatrical-film videocassette plan

  [1]Magnetic Videoen.wikipedia.org

  Andre Blay conceived a plan to license theatrical films for prerecorded home videocassette distribution.

• 1968

  Magnetic Video is founded

  [1]Magnetic Videoen.wikipedia.org

  Andre Blay and Leon Nicholson co-founded Magnetic Video Corporation as a home-video and home-audio duplication business in Michigan.

An early home-entertainment distributor that converted theatrical and television libraries into consumer-owned videocassette products and helped connect studio licensing with direct sales and video rental.

• Home video · 1977

  Magnetic Video Betamax releases

  Magnetic Video issued theatrical films on Betamax for consumer ownership, helping make the format a channel for feature-film distribution rather than only time-shifted television viewing. The initial catalog included major Fox titles and a mixture of contemporary and older films.

• Home video · 1977

  Magnetic Video VHS releases

  The company's VHS releases formed the other half of its early consumer catalog. By distributing the same general film program on VHS and Betamax, Magnetic Video addressed the two principal home-videocassette formats of the period.

• Licensed entertainment · 1978

  Licensed film and television catalog

  Magnetic Video expanded beyond the first Fox collection through agreements with studios, independent producers, estates, television companies, and archival rights holders. The resulting catalog covered feature films, television-related programming, documentaries, newsreels, and other licensed material.

• Copy protection · 1978

  MV-Gard

  MV-Gard was Magnetic Video's proprietary videotape copy-protection scheme. Introduced in 1978 to compete with Copyguard, it was applied to Magnetic Video tapes through the company's 1982 reorganization.

• Home video · 1982

  Laserdisc releases

  Near the end of its independent existence, Magnetic Video began issuing films in laserdisc format and maintained a short-lived laserdisc-related division. The initiative was later absorbed into Fox's successor video operations.

• 1977Video Club of America mail-order launch

  United States

  Magnetic Video used the Video Club of America to market and sell its initial film catalog directly to consumers. An early advertisement in TV Guide promoted the idea of purchasing prerecorded theatrical films for home use.

  Outcome. The campaign helped create consumer awareness of sell-through videocassettes and supported the company's direct-sales model.

  Source

• 1982

  Reorganize under 20th Century-Fox VideoStrategy

  Background

  After Andre Blay's departure, Fox consolidated and reshaped the Magnetic Video operation.

  Action taken

  Fox changed the operating identity to 20th Century-Fox Video and later combined its video operations with CBS Video Enterprises.

  Aftermath

  Magnetic Video ceased to function as an independent brand and became part of the corporate lineage leading to CBS/Fox Video.

  Source

• 1979

  Accept acquisition by 20th Century-FoxM&A

  Background

  Magnetic Video had developed a valuable distribution relationship with Fox and was a small over-the-counter public company.

  Action taken

  20th Century-Fox acquired Magnetic Video in March 1979.

  Aftermath

  The company operated within Fox's video structure until it was reorganized as 20th Century-Fox Video in 1982.

  Source

• 1978

  Expand the licensed catalog and international footprintStrategy

  Background

  The first film collection had demonstrated demand for prerecorded home entertainment.

  Action taken

  Magnetic Video added rights holders including Viacom, AVCO Embassy Pictures, ABC Video Enterprises, ITC, American Film Theatre, and United Artists, while establishing UK and Australian operations.

  Aftermath

  The brand became a broader catalog distributor rather than a company dependent solely on Fox films.

  Source

• 1978

  Introduce MV-Gard copy protectionOther

  Background

  Unauthorized copying was a concern for prerecorded-tape distributors, and Copyguard was already being used as a competing protection system.

  Action taken

  Magnetic Video introduced MV-Gard and applied it to its tapes.

  Aftermath

  MV-Gard remained associated with Magnetic Video releases until the company's reorganization in 1982.

  Source

• 1976

  Pursue theatrical-film licensing for home videoStrategy

  Background

  Emerging Betamax and VHS devices created a possible consumer market for prerecorded movies, although studio participation was still limited.

  Action taken

  Andre Blay sought and secured a license for fifty 20th Century-Fox films.

  Aftermath

  The resulting 1977 releases helped establish the commercial home-video model and encouraged the growth of video rental.

  Source

• 1982

  Fox reorganizes Magnetic Video as 20th Century-Fox Video[1]Magnetic Videoen.wikipedia.org

  Leadership change

  Following Andre Blay's departure, Fox reorganized the company under the 20th Century-Fox Video name.

• 1982

  CBS/Fox Video is formed[1]Magnetic Videoen.wikipedia.org

  M&A

  Fox later combined its video operations with CBS Video Enterprises, creating CBS/Fox Video and ending Magnetic Video's independent identity.

• 1979

  20th Century-Fox acquires Magnetic Video[1]Magnetic Videoen.wikipedia.org

  M&A

  20th Century-Fox purchased Magnetic Video, which had been a small over-the-counter public company with Andre Blay as a major shareholder and chairman.

• 1978

  Magnetic Video expands into the United Kingdom[1]Magnetic Videoen.wikipedia.org

  Other

  The company established Magnetic Video UK as part of its international expansion.

• 1978

  Magnetic Video introduces MV-Gard copy protection[1]Magnetic Videoen.wikipedia.org

  Product launch

  Magnetic Video introduced MV-Gard, a proprietary videotape copy-protection system designed to compete with Copyguard.

• 1977

  Magnetic Video releases theatrical films for home videocassette use[1]Magnetic Videoen.wikipedia.org

  Product launch

  The company released a group of fifty theatrical motion pictures licensed from 20th Century-Fox for consumer purchase on Betamax and VHS, helping establish a commercial market for prerecorded feature films.

• 1977

  Video Club of America promotes Magnetic Video titles by mail[1]Magnetic Videoen.wikipedia.org

  Campaign

  Andre Blay's mail-order Video Club of America advertised the initial Magnetic Video catalog directly to consumers.

1. 1Magnetic Videoen.wikipedia.org