Indeed. When my father bought our first VCR in the early '80s from Curtis-Mathis, the very first video he bought for my mother was “Raiders of the Lost Ark.”
And the two-tiered system did last, at least for some releases, well into the '90s. I remember trying to obtain a copy of “Mr Holland’s Opus” for my mother when it was available to rent, and couldn’t. At least not for less than a hundred bucks. I finally conned Blockbuster into selling me one previously viewed copy, but it was seriously a hassle.