Scarecrow Video opened in December of 1988, five years after Rebecca and George Latsios moved from Allentown, Pennsylvania to Seattle, Washington.

George always had a fondness for movies and considered starting his own video store. In 1986, George rented out about 200 of his own personal tapes in the rear of Backtrack Records and Video. In 1988, while working as a general manager for Kamon of Lake Union Restaurant, George became frustrated with making money for other people — so he quit. He convinced Rebecca that the time was right to open a video store of their own, and on December 8, 1988 – promptly at noon – Scarecrow Video was born. Containing an inventory of 600 titles, the Latona store grew. Five customers signed up on the first day and the store’s first $36 was made.