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Movie Gallery, Lile Entertainment Partner

9 Dec, 2008 By: Chris Tribbey

Movie Gallery Inc., which includes Hollywood Video and Movie Gallery stores, will have exclusive rental rights to titles from Lile Entertainment Group for the next two years, the companies announced Dec. 8.

The agreement has Movie Gallery paying for acquisitions by Lile Entertainment in exchange for a share of rental revenues and exclusive brick and mortar representation for the first 90 days of a new release. Lile Entertainment retains non-exclusive mail, online and video-on-demand rights to its properties.

"We're delighted to make this alliance with Hollywood Video and Movie Gallery as we simultaneously build a fully integrated independent studio,” said Lile Entertainment chairman and CEO Stephen Lile. “Core to this enterprise is having a national home entertainment partner that makes [our] titles available to millions of consumers across the United States and Canada.”

Lile added that his company is filling a void for small budget films.

“This alliance allows [us] to gain a national foothold in the most significant piece of the film revenue pie ... home entertainment,” he said. “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.”

Sherif Mityas, COO and president of retail operations for Movie Gallery, said: "This agreement with [Lile Entertainment] 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. This alliance combines the best of both worlds; our seasoned retail experience with the entrepreneurial spirit of [Lile Entertainment].”

Movie Gallery also announced it would be setting up an independents-only section in its stores, called “Exclusive to Hollywood Entertainment,” and will highlight Lile Entertainment titles on Hollywoodvideo.com and Moviegallery.com.

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