KPS Video Express originally started in 1981 as a kiosk at the back of a Nathan Road electrical shop.

Husband and wife Garrie and Kitty Roman built up a selection of Western and Chinese films on VHS tape which would be rented out for $15 Hong Kong dollars.

By 1992, KPS also offered LaserDiscs for sale and rent in addition to VHS tapes, as well as computer software, audio CDs and CD-ROM drives.

A 8,000 square feet (740 m2) test store was opened in Causeway Bay in the same year in order to experiment with the merging of these products under one roof.

[6] Initial plans were to launch 100 stores in Taiwan within three years, with megastores between 360 and 1,350 square meters offering videos on tape and laserdiscs for sale and rent, as well as music products and computer software.

Parallel imports of films intended for overseas markets were banned when the Copyright Ordinance became law on 1 July 1997, cutting product availability by 30 per cent.

At the same time, the company's rapid but undisciplined expansion put a strain on finances, as new stores were being opened without proper analysis of their location or feasibility.

In May 1998, rumours that KPS was close to collapse circulated on the internet, triggering panic rentals and the lack of confidence caused coupon sales to plunge.

[9] From that point on, a cash-only system would be introduced in which video rentals would cost between $20 and $25 Hong Kong dollars, while members would receive a 20% discount off that price.

KPS blamed the ruling for sealing the fate of the company when talks with a major corporation about a takeover broke down amid the strife.

[14] KPS Founder Garrie Roman was asked to leave by the board in November 1998 after his decision in June of the same year to fire Chief Executive Officer Rodney Miles.

[17] After the collapse, criminal organisations took advantage of the vacuum left by KPS and sold millions of dollars worth of unlicensed video CDs[18] American video-chain Blockbuster saw an opportunity to enter into the Hong Kong market, and entered into negotiations with KPS's receivers Ernst and Young to buy their operations.

[22] In addition, KPS also sold videos donated by their suppliers, and forwarded proceeds directly to Operation Santa Claus.