Similar to other subcultures, the birth of the demo scene was to a great extent determined by technical conditions: to the objective, "ignorant" beholder, demos may seem to have a merely artistical end in itself, without any further signification. Yet this culture was created by software crackers as a way of documenting their work.

Initially, demos came up in the context of the so-called warez scene. The warez scene consisted of programmers that on purpose removed the copy protection of commercial software (=software cracking) and then distributed these pirate copies. The warez scene experienced its first period of prosperity in the beginning of the 80´s, when home computers like the Commodore C64 were brought to market and thus to the people. Immediately, a group of mostly young people began to eagerly check out which way the existent devices could be used. Software was exchanged and sealings and restrictions attached by the producer were removed and dogded.

Soon a proper competition came up, aiming to find out who would be the first to crack a new programm. In order to put on and document one´s own achievements, people began to add a short intro to the cracked programms. This kind of credits was initially composed of simple textanimations and graphics - this is where the cracker had his own space to illustrate and represent his own capabilties as well as greet other crackers. This sort of freestyle exercise was very useful to gain respect and fame among the cracker´s scene. With the time passing, these intros grew larger and larger until they finally unpinned from the warez scene. This was when the name "demo" was first used for the intros.

Many people involved did spot the options of broadening and realise one´s own skills in a creative way. From these people, the so-called demo scene emerged, mainly in western europe: a scene and a subculture of its own, independent from others. Apart from some stylistic similarities, the demo scene and the warez scene don´t have that much in common.