Panasonic began basic research in video technology in 1953, commercializing its first professional and consumer models in 1964. In 1976, the company began selling the VX2000 VCR manufactured by Matsushita Kotobuki Electronic Industries.

Meanwhile, Panasonic and the Japan Victor Corporation (JVC), a Panasonic subsidiary, jointly developed the VHS recording scheme on the basis of proposals from JVC, and the system was widely hailed for its advanced technology. One reason for the success of VHS was close cooperation among VHS equipment manufacturers that ensured equipment compatibility as consumer video demand began to swell.

Panasonic released its MacLord brand of VHS video cassette recorders in 1977, which featured long recording time and bright, clear images.

The company was also making efforts to market its VHS system video equipment abroad. In February 1977, President Masaharu Matsushita went to the United States for direct negotiations with the top U.S. consumer electronics makers that led to a long-term VHS video equipment supply agreement with RCA. Soon after, General Electric joined the VHS manufacturers group.

By 1983, Panasonic had already produced 10 million VCRs, and its Video Division accounted for a large proportion of the company's sales. The VHS system was gradually getting the upper hand in the divided video market, and by 1987 had clearly become the worldwide standard.