[2][3] The first Video City store was opened by founder Terrance "Terry" Ewing in Glenorchy, Tasmania in 1982.

[3][4] Video City's demise is largely attributed to the widespread use of illegal digital downloads and the adoption of online streaming services.

The industry was initially affected by peer-to-peer file sharing networks such as Limewire and The Pirate Bay which facilitated the distribution of pirated digital video content, and later from the launch of streaming services including Netflix, Stan, ABC iview and SBS On Demand in Australia.

[3] Video City is well remembered in Tasmania for its sound branding in radio and television commercials, featuring the jingle "Good Times", developed by marketing agency Vision 2000 in the 1990s.

[12] The Liquor, Hospitality and Miscellaneous Workers Union took Video City to the Federal Court of Australia in 2007 after two employees were wrongfully fired for refusing to sign individual contracts.