 Nesmith formed the Pacific Arts Corporation, Inc. in 1974 to manage and develop media projects.Pacific Arts Video became a pioneer in the home video market, producing and distributing a wide variety of videotaped programs, although the company eventually ceased operations after an acrimonious contract dispute with PBS over home video licensing rights and payments for several series, including Ken Burns' "The Civil War".The dispute escalated into a lawsuit that went to jury trial in federal court in Los Angeles.