In 1983, director John G. Avildsen was getting ready to shoot The Karate Kid with stars Ralph Macchio, Pat Morita and others. As part of the rehearsal process, Avildsen decided to film all of the rehearsals and edited it together into a (very) rough version of the movie. It was used as a tool for the actors to give them a sense of what the movie would be like, how their characters would change, all of that important stuff. Presumably, it was never meant to see the light of day outside of the cast and crew.