[3] In 1969, Blay founded an audio/video production and duplication company called Magnetic Video, which produced a series of industrial films and tapes for various corporations in the early 1970s.

He used TV Guide to advertise the club, which also carried titles from Columbia Pictures and Walt Disney Productions after they each launched video divisions of their own,[3] and the results initially allowed it to boast registration of over 9,000 users.

He was later recognized by the Consumer Electronics Association as creating the idea that "sparked a retail revolution as hundreds of mom-and-pop video rental and sales stores popped up in every community in America."

[9] In the late 1970s, Blay paid a flat fee of $300,000 plus $500,000 yearly to 20th Century Fox to license movies from their catalogue, which he then duplicated and distributed, earning a royalty generated per video rented.

[10] While there he helped bring to production several movies, including Hope and Glory, Sid and Nancy, Souvenir, and A Time of Destiny.

[11] During the next several years Blay served as executive producer for several movies:[12] He also worked in securing venture capital for films such as The Princess Bride, The Emerald Forest, and The Name of the Rose.