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The pre-1980s conventional wisdom that consumers had no interest in watching the same films again and again at home turned out to be entirely wrong with respect to children. The "ultimate accelerant" for the rise of the "sell-through" home video market was the development of children's home video. The shift to home viewing radically changed revenue streams for film companies, because home renting provided an additional window of time in which a film could make money. As a result, home viewing of films remained limited to a small community of dedicated hobbyists willing and able to invest large amounts of money in projectors, screens, and film prints, and it therefore made little revenue for film companie

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The Walt Disney Company recognized that its flagship animation studio's family-friendly films were superbly positioned to conquer the home video market, and through its home video division, Buena Vista Home Entertainment, the company did just that during the 1980s and 1990s. Many harried parents discovered that it was a good investment to pay $20 to purchase a videocassette that could reliably keep their children riveted to the television screen for over an hour—and not just one time, but many, many times. Rather than sell a few thousand units at a wholesale price of $70 into the rental channel, video distributors could sell hundreds of thousands of units at a wholesale price of $15-20 into the retail "sell-through" channel. Therefore, in 1977, Magnetic Video originally priced its videocassettes at $50 to $70 each—a princely sum at a time when the average price of an American movie ticket was $2.23—and sold them only to wholesalers capable of handling a minimum order of $8,000. According to Douglas Gomery, studio executives thought that the handful of consumers actually interested in purchasing videocassettes in order to watch them again and again would be similar to the small community of film buffs who for decades had willingly paid hundreds of dollars to purchase release prints. Film studios and video distributors assumed that the overwhelming majority of consumers would not want to buy prerecorded videocassettes, but would merely rent the

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