History
In 1980, Disney established its own video distribution operation as part of Walt Disney Telecommunications and Non-Theatrical Company (WDTNT) with Jim Jimirro as its first president. Home video was not considered to be a major market by Disney at the time. WDTNT also handled the marketing of other miscellaneous ancillary items such as short 8 mm films for home use.
Disney's first releases on tape were 13 titles that were licensed for rental to Fotomat on March 4, 1980, initially in a four-city test (Chicago, Houston, Philadelphia, and San Francisco/Oakland/San Jose), to be expanded nationwide by the end of 1980. The agreement specified rental fees ranging from $7.95 to $13.95. This first batch of titles on VHS and Beta included 10 live action movies: Pete's Dragon (#10), The Black Hole (#11), The Love Bug (#12), Escape to Witch Mountain (#13), Davy Crockett, King of the Wild Frontier (#14), 20,000 Leagues Under the Sea (#15), Bedknobs and Broomsticks (#16), The North Avenue Irregulars (#17), The Apple Dumpling Gang (#18), and Hot Lead and Cold Feet (#19); and three of the compilations of short cartoons previously released by DiscoVision: On Vacation with Mickey Mouse and Friends (#20), Kids is Kids starring Donald Duck (#21), and Adventures of Chip 'n' Dale (#22). Later, on December 30, 1980, Mary Poppins (#23) was added to make 14 titles in all.
No new titles were released for half a year after Mary Poppins, but Walt Disney Home Video announced an expanded program for "Authorized Rental Dealers" in December 1980, and began to expand its dealer network during the first part of 1981. From January 1 to March 31, 1981, Disney had a "License One — Get One Free" promotion to encourage dealers to sign up. They also offered free rental use of a 7-minute Mickey Mouse Disco videocassette for customers who rented any title from an Authorized Rental Dealer from February through May 1981.
Disney was unusual among the major studios in offering a program for authorized rentals. Most of the other studios involved in the videocassette market at the time were trying to find ways to stop dealers from renting out their movie tapes. Magnetic Video (with titles from 20th Century Fox and others) ceased doing business with Fotomat after Fotomat began renting Magnetic Video cassettes without authorization. Disney's rental cassettes in blue cases looked completely different from sale cassettes, which were in white cases. That was designed to make it easy for Disney representatives to tell if dealers were violating their dealer agreements by renting out cassettes intended for sale, and it continued until 1983 or 1984, when they stopped doing so.
Read more about this topic: Walt Disney Studios Home Entertainment
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