Back in 2009, I still had a DVD player with a VCR built in. Those were very common when DVDs were first spreading into the market; mine was just particularly long-lived.
As for why the killer used a VHS camera, it's possible that he knew where his victims were going and had already scoped the place out, discovering that there was a VCR on the premises.
Dominic Perez may have chosen to go with VHS because of the symbolism of the videotape cassette itself. That big black boxlike thing carries a more powerful and sinister message than a little flash drive or something.
It was a bit odd that none of the victims commented on the outdated technology.
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