Exhibit 18




August 9, 1996



Mr. J. Steven Roy
Senior Vice President and
Chief Financial Officer
Movie Gallery, Inc.
739 W. Main Street
Dothan, Alabama 36301

Dear Sir:

Note 2 of the financial  statements of Movie Gallery,  Inc. included in its Form
10Q for the six months  ended June 30, 1996  describes a change in the method of
amortizing  the cost of  videocassette  and video game  rental  inventory  to an
accelerated  method with increased  amortization for "new release"  rental.  You
have advised us that you believe  that the change is to a  preferable  method in
your  circumstances  because (i) it will result in a better match of the cost of
videocassettes   with  their  revenues  in  the  Company's   current   operating
environment and (ii) it is consistent with industry practice.

We conclude  that the change in the method of  amortizing  videocassette  rental
inventory,   including  video  games  and  audio  books,  is  to  an  acceptable
alternative  method,  which, based on your business judgment to make this change
for the reasons  cited above is preferable  in your  circumstances.  We have not
conducted an audit in accordance with generally  accepted auditing standards for
any  financial  statements  of the  Company  as of any  date or for  any  period
subsequent to December 31, 1995,  and therefore we do not express any opinion on
any financial statements of Movie Gallery, Inc. subsequent to that date.

                                                     Very truly yours,


                                                     /s/ Ernst & Young LLP


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