Magnetic Video Corporation was established by the co-founder Andre Blay, an American film producer in 1968 with Leon Nicholson and was based in Farmington Hills, Michigan.

The following year, he convinced 20th Century-Fox, which was then in financial difficulty, to license fifty of their films for home video release in VHS and Betamax formats.

Blay also established the Video Club of America in order to sell the titles directly to consumers by mail.

Their first ad appeared in the November 26 to December 2 Issue of TV Guide (Soap Cast on Cover).

[citation needed] In March 1979, Fox purchased Magnetic Video, which was a small OTC traded public company (Blay was a major shareholder and Chairman).