Hollywood Video and Movie Gallery Stores to Be Exclusive Rental Outlets for Lile Entertainment Group Titles in North America
subsidiary Hollywood Entertainment Corporation, has entered into a two-year
exclusive alliance with LEG, which will cover MGI’s Hollywood Video stores in
distribute its titles through online, mail and digital distribution channels,
while reaching a broader audience for its films through Hollywood Video and
Movie Gallery stores.
Under the terms of the agreement, MGI will cover the cost of LEG home
entertainment acquisitions in exchange for an undisclosed share of rental
revenues from LEG produced and acquired titles. MGI will have an exclusive
90-day window for the in-store rental distribution of each LEG title as it
becomes available. During the period of exclusivity, Hollywood Video and
Movie Gallery stores will be the sole “Brick and Mortar” retailer of LEG
titles.
“We’re delighted to make this alliance with Hollywood Video and Movie
Gallery as we simultaneously build a fully integrated independent studio.
Core to this enterprise is having a national home entertainment partner that
makes LEG titles available to millions of consumers across
and
opportunity to fill the void created by the abandonment of small to mid level
budget movies by the studios and independent distributors. This alliance
allows LEG to gain a national foothold in the most significant piece of the
film revenue pie … home entertainment. For Hollywood Video and Movie
Gallery, it gives both brands strategic position further up the film
distribution channel, which will likely segue into theatrical revenue sharing.
The unique combination of MGI’s established in-store retail experience with
the national brand power of the Hollywood Video and Movie Gallery brands is
one of the biggest factors that attracted us to this alliance. The fact that
both companies are headquartered in
for us.”
“This agreement with LEG is a great opportunity for our Hollywood Video
and Movie Gallery stores to provide our customers with convenient access to
the best of independent film,” said Sherif Mityas, COO and President of Retail
Operations for MGI. “This alliance combines the best of both worlds; our
seasoned retail experience with the entrepreneurial spirit of LEG. Moreover,
Mr. Lile has assembled a world-class team of
the entire studio value chain from distribution to production. We look forward
to working with LEG to drive innovations in the marketing of home
entertainment, and to dramatically expand the quality of our independent
titles.”
In addition to carrying LEG titles in its Hollywood Video and Movie
Gallery stores throughout
“Exclusive to Hollywood Entertainment” sections in its Hollywood Video stores,
which will include LEG titles along with other independent movies from a
variety of distributors. Hollywood Video and Movie Gallery also plan to
highlight LEG titles on Hollywoodvideo.com and Moviegallery.com.
About Movie Gallery, Inc.
MGI is the second largest North American video rental company with
approximately 3,300 stores located in all 50 U.S. states and
under the brands Movie Gallery, Hollywood Video and Game Crazy. Since MGI’s
initial public offering in
to its present size through acquisitions and new store openings. For more
information about MGI, please visit our website: www.moviegallery.com.
About Lile Entertainment Group
LEG is a privately held fully integrated boutique studio, based in
production and acquisitions, foreign sales, as well as theatrical and home
entertainment distribution. LEG is headed by
Mr. Lile is the Co-Founder and former CFO of Ensequence, the worlds leading
interactive television company. For media contacts visit our website:
www.legfilms.com.
Media Inquires Contact: Movie Gallery, Inc., 503-570-5233
SOURCE Movie Gallery, Inc.