EXHIBIT 18



November 13, 1998




The Board of Directors and Stockholders
Movie Gallery, Inc.
739 West Main Street
Dothan, Alabama  36301

Dear Sirs:

Note 2 of Notes to Condensed Consolidated Financial Statements of Movie Gallery,
Inc.  included  in its Form  10-Q for the nine  months  ended  October  4,  1998
describes  a change  in the  method of  accounting  for  amortizing  the cost of
videocassette and video game rental inventory from the  straight-line  method to
an accelerated  method.  You have advised us that you believe that the change is
to a  preferable  method in your  circumstances  because (1) it will result in a
better match of the cost of  videocassettes  and video games with their revenues
in the Company's  current  operating  environment  and (2) it is consistent with
trends in industry practice.

There are no  authoritative  criteria for  determining  a preferable  accounting
method for amortization of  videocassette  and video game inventory based on the
particular circumstances;  however, we conclude that the change in the method of
accounting for amortization 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 of any financial  statements of the
Company as of any date or for any  period  subsequent  to  January 4, 1998;  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